The goal of the capital budgeting decision is to select capital projects that will decrease the value of the firm.

Question

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The goal of the capital budgeting decision is to select capital projects that will increase the value of the firm. This is done by identifying projects that are expected to generate cash flows in excess of their costs, and then selecting those with the highest net present value (NPV) or internal rate of return (IRR) to add value to the firm.

The Goal of the Capital Budgeting Decision Is to Select