Which One of the Following Is a Capital Budgeting Decision

question 2

Multiple Choice

Which one of the following is a capital budgeting decision?

• A)Deciding when to repay a long-term debt
• B)Determining how much inventory to keep on hand
• C)Determining how much debt should be borrowed from a particular lender
• D)Deciding whether or not to open a new store
• E)Determining how much money should be kept in the checking account

---

Definitions:

Edgeworth Box

A diagram used in economics to show various distributions of resources and to analyze competitive equilibria between two agents with fixed resources.

Contract Curve

In microeconomics, it represents the set of optimal allocations of resources between two or more parties from an initial situation.

Pareto Optimal

A condition where resources are distributed in such a way that improving the situation of one person necessitates worsening the situation of another person.

Utility Function

Represents the relationship between the quantities of goods consumed and the level of happiness or utility derived from them.