Which of the following would be a capital budgeting decision that a small firm might need to make?

Question

Quizplus · Accepted Answer

Capital budgeting decisions involve long-term investment choices that impact the profitability of the firm. Replacing delivery trucks with newer models represents a significant capital investment for a small firm and would require analysis of potential returns and cash flows over a longer time period. Issuing new stock, negotiating a new supplier contract, and computing quarterly labor costs are not capital budgeting decisions, but rather financing, operational, and managerial decisions, respectively.

Which of the Following Would Be a Capital Budgeting Decision