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Which Statement Is TRUE Regarding Capital Budgeting

Question 30

Multiple Choice

Which statement is TRUE regarding capital budgeting?


A) It ends with the selection and purchase of a particular asset.
B) All assets and projects much be evaluated just once during acquisition.
C) If a particular asset does not live up to expectations, management must take necessary corrective action.
D) Capital budgeting is an exact process.
E) Managers must rigidly hold to the information on which their companies were founded.

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