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 activites may be motivated by the desire to expand the firm's revenues, reduce its costs; or satisfy its mandatory or voluntary legal, hiealth, and safety requirements. They may have, more or less, multyear effects on the organization and may or may not be considered as capital budgeting activities. Capital budgeting is the process of planning and controling investments in assets that are expected to produce cash flows for one year or less. This statement is: Faise True 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 peneraliy analyze them in different vertical cotegories. Which of the following are examples of a capital budgeting project? Check alf that apply. Fresno Furniture Manufacturing inci's purchase of a new plece of equipment. Florence Fashion Footwear inc's purchase of its normal stock of raw materials inventory. Alerander Enterprises inci's purchase of a competitor's subsidiary. For which of the following reasons are capital budgeting decsions important to a business organization? check all that apply. Captal ievestments are relatively inexpensive. Cagital inveutments have mullivear life spans, so mistakes linger for a long time Capital investmants are difficuit to reverse without incurring large adontional expenses