Sawaal
4
Q:

Capital budgeting is primarily concerned with

A) planning future financing needs B) minimizing the cost of capital
C) capital formation in the economy D) evaluating investment alternatives

Answer:   D) evaluating investment alternatives



Explanation:

Capital budgeting is the process by which a company or an industry determines whether projects such as investing in R&D, opening a new branch, replacing a machine are worth pursuing. A project is worth pursuing if it increases the value of the company. Capital budgeting also known as investment appraisal. 

 

It is primarily concerned with evaluating investment alternatives.

Subject: Business Awareness
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO
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