Capital budgeting analysis is based on

(A) the discounted cash flows incremental to a project.

(B) the additional income generated from the sales of a newly added project.

(C) the expected profits generated by a project's sales and costs.

(D) all incremental and allocated costs assigned to a project.

(E) all past and future expenditures related to a proposed project.

Question

Business

Rashad Waters

14 October, 12:30

Capital budgeting analysis is based on

(A) the discounted cash flows incremental to a project.

(B) the additional income generated from the sales of a newly added project.

(C) the expected profits generated by a project's sales and costs.

(D) all incremental and allocated costs assigned to a project.

(E) all past and future expenditures related to a proposed project.

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Answers (1)

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Snickers · Answer 1

(D) all incremental and allocated costs assigned to a project

Explanation:

The term capital budgeting in business maybe defined as the process of appropriating cash expenditures to long term investment opportunities, longer life spam than the operating period - usually a year. That is, capital budgeting, or capital expenditure is the proposed capital as well as the source of revenue to financing the proposed investment opportunities.