Which One of the Following Statements Concerning Capital Budgeting Is

question 40

Multiple Choice

Which one of the following statements concerning capital budgeting is not true?

• A) A basic objective underlying capital budgeting is to select assets that will earn a satisfactory return.
• B) Capital budgeting is the process of identifying, evaluating, selecting, and controlling long-term investment projects.
• C) Because of the existence of advanced forecasting techniques, capital budgeting is based on precise estimates of future events.
• D) Capital budgeting involves estimating the revenues and costs of each proposed project, evaluating their merits, and choosing those worthy of investment.
• E) Capital budgeting uses after-tax cash flows in the analysis of proposed investments.

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Definitions:

Person's Behaviour

The actions or reactions of an individual in response to external or internal stimuli.

Intentions To Act

The motivational factors that influence an individual's decision to engage in a particular behavior, strongly predicting the likelihood of performing the behavior.

Multiple-Act Criterion

A method in psychology used to judge behavior across different situations for a more comprehensive assessment of traits or tendencies.

General Attitudes

The overall or broad evaluations individuals hold towards objects, people, or situations, reflecting their feelings, beliefs, and behavioral tendencies.