Capital budgeting decisions usually involve analysis of:

Question

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Capital budgeting decisions involve analysis of long-term investments, which require significant capital expenditures and have a large impact on the future success of the business. The analysis typically considers cash inflows and outflows, as well as factors such as risk, timing, and potential returns. Short-term investments and investments with certain outcomes only are typically evaluated through other financial analysis techniques, such as cash flow analysis or scenario analysis. Operating revenues may be considered as a potential cash inflow, but are not the sole focus of capital budgeting decisions.

Capital Budgeting Decisions Usually Involve Analysis Of