A weakness in the capital budgeting process is the funds for an investment proposal obtained by issuing bonds,and the respective interest payments,are not considered in the capital budgeting process.

Question

Quizplus · Accepted Answer

The funds obtained by issuing bonds and the respective interest payments are considered in the capital budgeting process, as they are a form of financing that affects the overall cost of capital and the project's profitability. In fact, the cost of debt is one of the inputs used in the calculation of the weighted average cost of capital (WACC), which is a key parameter in capital budgeting.

A Weakness in the Capital Budgeting Process Is the Funds