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The ultimate success of company operations depend significantly upon sound capital budgeting decisions

The ultimate success of company operations depend significantly upon sound capital budgeting decisions

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Answer #1

Yes, the given statement is correct.

Because, all the capital budgeting techniques like Net Present Value (NPV), Internal Rate of Return (IRR), Pay Back Period Method, Accounting Rate of Return (ARR), Profitability Index (PI), Discounted Cash Flow Method etc. provides a clear view on how the company can get benefited with more profits by making investments at a future period with a clear proof whether the company will get succeeded with such investments or not.

Therefore, the success of a company's operations completely depends upon the sound capital budgeting decisions.  

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