Both financial and nonfinancial factors associated with proposed capital budgeting opportunities need to be considered as part of the capital budgeting decision process.

Question

Quizplus · Accepted Answer

Both financial and nonfinancial factors (such as market conditions, environmental impact, and social responsibility) should be taken into account when evaluating potential capital budgeting projects. Ignoring nonfinancial factors may result in making suboptimal investment decisions.

Both Financial and Nonfinancial Factors Associated with Proposed Capital Budgeting