Which of the following will ensure better capital budgeting decisions?
A)Ignoring or rejecting projects from people who may have an interest in their approval
B)Only accepting projects that have been proposed by the top management to reduce unintentional biases
C)Independently verifying technical inputs received by individuals proposing the projects
D)Using both time value based and non-time value based techniques to screen projects when personal interest is suspected

Question

Quizplus · Accepted Answer

Independent verification of technical inputs received from project proposers helps to ensure accuracy and consistency of information, reducing the risk of biases and errors. This can lead to more informed and better capital budgeting decisions. Options A and B involve potential biases and conflicts of interest, while option D may not be necessary in all situations and can lead to slower decision-making.

Which of the Following Will Ensure Better Capital Budgeting Decisions