A characteristic of capital budgeting is that

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is a key component of capital budgeting, and it must be greater than the cost of capital for a project to be accepted. A large amount of money may be involved, but it is not a defining characteristic. Similarly, a negative net present value (NPV) would indicate that the project is not financially beneficial, so it would not be accepted. The time horizon can vary depending on the project and industry.

A Characteristic of Capital Budgeting Is That