One of the most important financial management activities that a firm undertakes is its evaluation and allocation of investment funds to support its future survival and growth. These activities may be motivated by the desire to expand the firm's revenues, reduce its costs, or satisfy its mandatory or voluntary legal, health, and safety requirements. They may have, more or less, multiyear effects on the organization and may or may not be considered as capital budgeting activities. True or False: Capital budgeting is the process of planning and controlling investments in assets that are expected to produce cash flows for one year or less. True False The capital budgeting process in a company involves evaluation of cash flows, risk analysis, correlation with the portfollo of projects in the company etc. To make this process more streamined, firms identify whether the projects qualify as a capital budgeting project or not and generally analyze them in different vertical categories: Which of the following are examples of a capital budgeting project? Check all that apply. Andersan Animations incis financing of its monthly average amount of accounts receivabie Intemational imports theis replacement of an existing piece of equigment Detroit Diesel Services inc's acquisition of a new parcel of real estate For which of the following reasons are caphal budgeting decisions important to a business organization? Check af chat apply. The capital budgeting process in a company involves evaluation of cash flows, risk analysis, correlation with the portfolio of projects in the company etc. To make this process more streamlined, firms identify whether the projects qualify as a capital budgeting project or not and generally analyze them in different vertical categories. Which of the foliowing are examples of a capital budgeting project? Check all that apply. Anderson Animations inc.'s financing of its monthly average amount of accounts recelvable International Imports incis replacement of an existing piece of equipment Detroit Diesel Services Inci's acquisition of a new parcel of real estate For which of the following reasons are capital budgeting decisions important to a business organizotion? Check afl that apply. Capital imvestments tend to be expensive. Copital investments are eashy and quickly reversed. Cagtoh invertments affect the fims longiterm performance and erofitability