Which one of the following is a capital budgeting decision?
A)Deciding when to repay a long-term debt
B)Determining how much inventory to keep on hand
C)Determining how much debt should be borrowed from a particular lender
D)Deciding whether or not to open a new store
E)Determining how much money should be kept in the checking account

Question

Quizplus · Accepted Answer

Capital budgeting decisions involve investments in long-term assets that will generate future cash flows. Opening a new store requires a significant investment of resources and is a long-term decision that can affect the cash flows of a company for years to come. Options A, B, C, and E are all related to short-term financial management decisions.

Which One of the Following Is a Capital Budgeting Decision