Capital budgeting is

Question

Quizplus · Accepted Answer

Capital budgeting involves the methods used to evaluate and select long-term investments or projects that are expected to generate future cash flows for a company. It is an important aspect of financial management and decision making. The process involves analysis of potential investments to determine their financial feasibility and to estimate the expected returns. Therefore, option C is the correct answer. Option A is incorrect because capital budgeting is not related to how to report earnings on financial statements. Option B is incorrect because the hurdle rate is related to the cost of capital and not the methods used in capital budgeting. Option D is incorrect because capital budgeting is a finance term and not related to marketing.

Capital Budgeting Is