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30 October, 18:33

Which of the following are NOT included in the formal financial analysis of a capital budgeting program?

a. quality of the output

b. safety of employees

c. cash flow

d. Neither a nor b are included.

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Answers (1)
  1. 30 October, 21:34
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    Answer: Option B

    Explanation: Capital budgeting refers to the process in which an analyst tries to evaluate whether a long term investment will be profitable for the organisation or not.

    In the capital budgeting process, only the quantitative aspects of a project will be taken into consideration and qualitative aspects such as quality and work space safety are not considered.

    Hence from the above we can conclude that the right option is B.
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