The capital budgeting process in a company involves evaluation of cash flows, risk analysis, correlation...
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Finance
The capital budgeting process in a company involves evaluation of cash flows, risk analysis, correlation with the portfolio of projects in the company etc. To make this process more streamlined, firms identify whether the projects qualify as a capital budgeting project or not and generally analyze them in different vertical categories. Which of the following are examples of a capital budgeting project? Check all that apply. Collins Construction Co.'s investment in a research and development program Cambridge Equipment Co.'s $25,000 investment in short-term marketable securities Alexander Enterprises Inc.'s investment in employee education and training programs For which of the following reasons are capital budgeting decisions important to a business organization? Check all that apply. Capital investments affect the firm's long-term performance and profitability. Capital investments tend to be expensive. Capital investments are easily and quickly reversed
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