To evaluate a capital budgeting decision, it is sufficient to determine its consequences for the firm's earnings.

Name: To evaluate a capital budgeting decision, it is sufficient to determine its consequences for the firm's earnings.
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It is not sufficient to evaluate a capital budgeting decision based solely on its impact on earnings. Other factors, such as cash flows, cost of capital, risk, and long-term strategic goals, must also be considered.

To Evaluate a Capital Budgeting Decision, It Is Sufficient to Determine