1. caterpillar is a leading manufacturer of construction and mining . caterpillar often faces a critical ____ decision of whether to replace an existing earth moving machine with a newer model.

a. payback

b. capital budgeting

c. dividend

d. present value

2. which of the following capital budgeting project are among the most difficult to evaluate?

a. maintenance project

b. new profucts and new businesses

c. cost cutting revenue enhancing project

d. capacity expansions in current business