In Theory, Capital Budgeting Decisions Should Depend Solely on Forecasted

question 4

True/False

In theory, capital budgeting decisions should depend solely on forecasted cash flows and the opportunity cost of capital.The decision criterion should not be affected by managers' tastes, choice of accounting method, or the profitability of other independent projects.

---

Definitions:

Evolutionary Psychology

A theoretical approach explaining psychological traits as adaptations evolved to solve recurrent problems in human ancestral environments.

Fulfilling Need

A psychological or physiological requirement essential for well-being and satisfaction of an individual.

Evolutionary Psychology

A theoretical approach in psychology that examines human thoughts, feelings, and behaviors through the lens of natural selection and adaptation.

Want To Marry

The desire or intention to enter into the institution of marriage, reflecting social, emotional, or legally recognized partnership commitments.