45. Capital budgeting is important for which of the following reasons:

Multiple answers

a.since projects approved via capital budgeting are long term the firm becomes tied to the project and loses some of its flexibility during that period.

b.when making the decision to purchase an asset managers need to forecast the revenue over the life of that asset.

c.given the length of the projects capital-budgeting decisions ultimately define the strategic plan of the company.

d.it determines the required rate of return for the firm.