Which of the following is NOT true about capital budgeting? a. It involves identifying projects that will add to a firm's value. b. It involves investing large capital. c. It allows a firm to reverse the decision of large capital investments at any time. d. It allows a firm's management to analyze potential business opportunities and decide on which ones to undertake.

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22-11-2022
Business

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Which of the following is NOT true about capital budgeting? a. It involves identifying projects that will add to a firm's value. b. It involves investing large capital. c. It allows a firm to reverse the decision of large capital investments at any time. d. It allows a firm's management to analyze potential business opportunities and decide on which ones to undertake.

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dubeyshailja64 dubeyshailja64 · Answer 1 · 2022-11-29T13:53:11+01:00

The following is NOT true about capital budgeting It allows a firm to reverse the decision of large capital investments at any time. Thus the correct option is C.

What is capital budgeting?

When a company wants to assess potential big projects or investments, they use capital budgeting. The creation of accountability and measurability makes it significant for business.

When creating a capital budget, projects that will increase a company's worth are considered. It entails spending a lot of money. It enables the management of a company to assess possible business prospects and choose which ones to execute.

Therefore, option C is appropriate.

Learn more about Capital budgeting, here:

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