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The Ultimate Purpose of a Capital Budget Is to Forecast

Question 8

Multiple Choice

The ultimate purpose of a capital budget is to forecast _____. 


A) the target payback periods of the projects undertaken by a firm
B) the funds required to purchase fixed assets for future projects
C) the future value of the cash inflows from various projects
D) the terminal value of the cash flows from different projects
E) whether projects have multiple internal rates of return

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