As a general rule, a capital expenditure proposal is acceptable to a business when its return on investment is greater than the cost to the business of providing cash to make the investment.

Question

Quizplus · Accepted Answer

A capital expenditure proposal is considered acceptable when the return on investment (ROI) exceeds the cost of capital, indicating that the investment will generate returns greater than its cost, thereby adding value to the business.

As a General Rule, a Capital Expenditure Proposal Is Acceptable