In Making Sound Capital Budgeting Decisions, the Principal Focus Is

question 14

Multiple Choice

In making sound capital budgeting decisions, the principal focus is on:

• A) After-tax cash flows only.
• B) Timing of the cash flows only.
• C) After-tax cash flows and the timing of these cash flows.
• D) Accounting-based measures of revenues and expenses.
• E) Nonfinancial performance indicators of various projects under consideration.

---

Definitions:

Technological Breakthroughs

Significant advancements or innovations in technology that can lead to new products or more efficient processes.

Green Technologies

Innovative technologies that are environmentally friendly, focusing on energy efficiency, reducing pollution, and conserving natural resources.

Smart Grid Electricity

An enhanced electrical grid that uses digital technology to monitor and manage the transport of electricity from all generation sources to meet the varying electricity demands of end-users.

Environmental Scan

A process that systematically reviews the external and internal environments to identify risks, opportunities, and trends that can impact an organization.