Capital Budgeting Decisions are based on:

Name: Capital Budgeting Decisions are based on:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Capital budgeting decisions are primarily based on incremental cash flows rather than profits, assets, or capital. This is because cash flows provide a more accurate reflection of the financial benefits and costs associated with a project over time, taking into account the timing of receipts and payments, which is crucial for assessing the viability and value of long-term investments.

Capital Budgeting Decisions Are Based On