Capital investment analysis is a decision process for the purchase of capital facilities,such as buildings and equipment.

Question

Quizplus · Accepted Answer

Capital investment analysis is a decision process used to evaluate the costs and benefits associated with investing in capital facilities, such as buildings and equipment. This process involves analyzing factors such as return on investment, net present value, internal rate of return, and payback period to determine whether the investment is likely to generate positive cash flows and meet the company's financial goals. Therefore, the statement that capital investment analysis is a decision process for the purchase of capital facilities is true.

Capital Investment Analysis Is a Decision Process for the Purchase