Capital Budgeting Techniques Should

question 30

Multiple Choice

Capital budgeting techniques should:

• A) fully account for expected risk and return.
• B) recognize the time value of money.
• C) lead to higher stock prices when applied.
• D) all of the above.

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Definitions:

Extraordinary Repairs

Significant expenditures that extend the useful life of an asset, improve its efficiency, or restore its capacity, distinguished from routine maintenance.

Grading

The process of assessing or classifying the quality, size, or performance of different items or individuals.

Land Improvements

Land improvements include alterations or enhancements made to a piece of land to increase its value or utility, such as landscaping or adding parking lots.

Buildings

Fixed assets that refer to structures used for business operations, such as offices, factories, and warehouses, represented on the balance sheet and subject to depreciation.