The Primary Purpose of Capital Budgeting Is To

The primary purpose of capital budgeting is to:

A) Determine the amount of cash and inventory to keep on hand.
B) Estimate the initial cost of a project.
C) Distinguish projects that have at least a five-year life from those that don't.
D) Determine the risk level of a project.
E) Identify projects that produce cash flows that exceed the cost of the project.