The availability of funds for capital expenditures does not affect a firm's capital budgeting decisions.

Question

Quizplus · Accepted Answer

The availability of funds for capital expenditures is a crucial factor that affects a firm's capital budgeting decisions. The amount of funds available determines the scale and scope of projects that can be undertaken, and the firm's cost of capital also affects the required rate of return on investments. Therefore, firms must consider the availability of funds when making capital budgeting decisions, including evaluating the cost-effectiveness of different projects and determining the optimal allocation of resources.

The Availability of Funds for Capital Expenditures Does Not Affect