Which one of the following is a capital budgeting decision?
A)Determining how much debt should be borrowed from a particular lender
B)Deciding whether or not a new production facility should be built
C)Deciding when to repay a long-term debt
D)Determining how much inventory to keep on hand
E)Deciding how much credit to grant to a particular customer

Question

Quizplus · Accepted Answer

Capital budgeting decisions involve evaluating and selecting long-term investments that will generate future revenue and profits. Building a new production facility is a major capital investment decision.

A) Determining how much debt to borrow is a financing decision 
C) Deciding when to repay long-term debt is also a financing decision 
D) Determining how much inventory to keep on hand is an operating decision 
E) Deciding how much credit to grant to a particular customer is also an operating decision.

Which One of the Following Is a Capital Budgeting Decision