The ultimate goal of the capital budgeting process is to ________.
A) determine how the consequences of making a particular decision affects the firm's revenues and costs
B) list the projects and investments that a company plans to undertake in the future
C) forecast the consequences of a list of future projects for the firm
D) determine the effect of the decision to accept or reject a project on the firm's cash flows

Question

Quizplus · Accepted Answer

The ultimate goal of the capital budgeting process is to determine the effect of the decision to accept or reject a project on the firm's cash flows. While options A, B, and C are part of the capital budgeting process, they are not the ultimate goal of it. The ultimate goal is to make a decision that maximizes the value of the firm.

The Ultimate Goal of the Capital Budgeting Process Is to ________