The main purpose of capital budgeting is to help managers make decisions about
A) discounts to offer to customers.
B) long-term investments.
C) nonfinancial constraints on expansion.
D) short-term investments.

Question

Quizplus · Accepted Answer

The main purpose of capital budgeting is to evaluate long-term investment projects and determine which ones to pursue based on various financial factors such as net present value and internal rate of return. It is not related to discounts, nonfinancial constraints or short-term investments.

The Main Purpose of Capital Budgeting Is to Help Managers