Capital budgeting is concerned with
A) whether a company's assets should be financed with debt or equity.
B) managing a firm's cash budgeting procedures.
C) what long-term investments a firm should undertake.
D) planning sales of a corporation's equity capital.

Question

Quizplus · Accepted Answer

Capital budgeting is the process of making decisions regarding which long-term investment projects a company should undertake. This involves analyzing and evaluating potential investments such as new equipment, facilities, or products in terms of their expected returns, risks, and costs. It is a crucial aspect of a company's financial management as it involves allocating resources towards the most profitable projects that will generate the highest returns for the company in the long run.

Capital Budgeting Is Concerned with