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, multlyear effects on the organization and may or may not be considered as capital budgeting activities. Capital budgeting is the process of: Planning and controlling investments in assets that are expected to require cash flows during the next year Planning and controlling investments in assets that are expected to produce cash flows for more than one year 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, firma identify whether the projects qually 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. Edinburgh Exports Inc.'s purchase of a new plece of equipment Marston Manutocturing Co.'s purchase of its normal stock of raw materials inventory Lancashire Racway Cars purchase of a competitor's subsidiary For which of the following reasons are capital budgeting decisions important to a business organization? Check all that apply Capital investments have relatively short lite spans, co mistakes are worked through rather quickly Capital budgeting the process of: Panking and controlling investments in assets that are expected to require cash flows during the next year Pansing and controlling investments in assets that are expected to pochows for more than one year The capital bugeting process in a company inwals von of shows anys, creation with the portfolio ofrece in the company ate. To make this process more streamlined, firma only whether the projecte quality as a capital budgeting project or not and generally any them offerent vertical categories * tu Which of the following areas of bongo Check all that Edinburgh End of me Mars Manchurch of Mack of water Lancho For which the capitano portato a business Cammeone who Contatos Contact met och