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1. Lexi, Lauren and Madeleine are having a discussion. “Capital budgeting is designed to select projects...

1. Lexi, Lauren and Madeleine are having a discussion. “Capital budgeting is designed to select projects that cost the least,” said Lexi. “No”, said Lauren, “capital budgeting is about lowering operating expenses to enable efficiency.” “You are both wrong,” said Madeleine. “Capital budgeting is about – practically speaking – allowing mangers to keep their jobs.” What do you think? Is Lexi right? Is Lauren right? Is Madeleine right? Are none of them correct? Support your answer with examples, as appropriate.

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