A good capital budgeting or investment decision is one in which the perceived benefits are worth more to the firm than the cost of the asset.

Question

Quizplus · Accepted Answer

A capital budgeting decision is considered good when the benefits expected from the investment, such as increased revenues or cost savings, outweigh the cost of acquiring the asset or making the investment. If the costs exceed the benefits, it would not be a good investment decision. Therefore, the statement is true.

A Good Capital Budgeting or Investment Decision Is One in Which