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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
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 following are examples of a capital budgeting project? Check all that apply Alexander Enterprises Inc.'s purchase of a competitor's subsidiary Florence Fashion Footwear Inc.'s purchase of its normal stock of raw materials inventory Fresno Furniture Manufacturing Inc.'s purchase of a new piece of equipment For which of the following reasons are capital budgeting decisions important to a business organization? Check all that apply Capital investments have relatively short life spans, so mistakes are worked through rather quickly. Capital investments tend to reflect the firm's future activities, markets, and productive technologies. Capital investments tend to require sizable cash outlays
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