Which one of the following is a capital budgeting decision?
A) Determining how much debt should be borrowed from a particular lender.
B) Deciding whether to open a new store.
C) Deciding when to repay a long-term debt.
D) Determining how much inventory to keep on hand.
E) Determining how much money should be kept in the checking account.

Question

Quizplus · Accepted Answer

Deciding whether to open a new store is a capital budgeting decision because it involves making a long-term investment decision about allocating capital to a project that is expected to generate future benefits.

Which One of the Following Is a Capital Budgeting Decision