Capital budgeting decisions must be carefully considered for the following reasons, except for:

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Capital budgeting decisions primarily involve considerations such as the large outlay of money, the long-term commitment of resources, and the risk of changing external conditions. The discounting of cash flows is not an exception but rather a fundamental part of the capital budgeting process, used to evaluate the present value of future cash flows.

Capital Budgeting Decisions Must Be Carefully Considered for the Following