The size of capital investments and the difficulty in reversing them once they are made make capital-budgeting decisions very important to the firm.

Question

Quizplus · Accepted Answer

Capital-budgeting decisions involve committing significant financial resources to a project or investment. Once these investments are made, they may be difficult or costly to reverse. Therefore, these decisions are crucial to the financial health of the firm.

The Size of Capital Investments and the Difficulty in Reversing