Which of the Following Is an Objective of Capital Budgeting

D maximize market share. Conversely budgeting may not be of much use for a.

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The liquidity objective deals with the payment of dividends c.

. Objective of capital budgeting To ensure the selection of the possible profitable capital project To ensure the effective control of capital expenditure in order to achieve by forecasting the long-term financial requirements. Sunk cost is a relevant cost in capital budgeting. Business expansion decision in a capital expenditure decisions.

B maximize the value of the firms common stock. Capital budgeting methods include Net Present Value Accounting Rate of Return Internal Rate of Return Discounted Payback Period Payback Period Profitability Index. DTo measure durability of the project.

Which of the following is an objective of capital budgeting. Optimize the number of project requests. To earn a satisfactory return on investment.

C maximize return on investment. To reverse past decisions. The capital budget must clearly state criteria for meeting this objective.

An objective of the capital budget is to support the marketing plan with strategic purchases. To decide whether a. The long-run objective of financial management is to.

To discount all future and past cash flows. A Investment Decision B Working Capital Management C Marketing Skip to content Engineering interview questionsMcqsObjective QuestionsClass NotesSeminor topicsLab Viva Pdf free download. In tune with objectives of financial management its aim is selecting those projects that maximize shareholders wealth.

Internal Rate of Return. To know whether the replacement of any existing fixed assets gives more return than earlier. A common objective in creating a budget is to use it as the basis for judging employee performance through the use of variances from the budget.

To know more about the necessity of capital budgeting for the companies let us go through the following objectives. Maximize the assets of the firm. What are the earnings per share EPS for.

A maximize earnings per share. Major role of the financial management is the selection of the most gainful assortment of capital investment and it is vital area of decision-making for the financial manger because any action taken by the manger in this area affects the. Which of the following is not the objective of capital budgeting techniques.

Operating decisions deal with better utilization of non-current assets d. To find out the profitable capital expenditure. For example the budget could say No expenditure for assets shall be made without a review of the marketing plan for that assets output 8.

An objective of the capital budget is to support the marketing plan with strategic purchases. - Replacement of manufacturing equipment with more modern and efficient equipment. Capital budgeting identifies how much will be spent for the entire project tracking each line item separately.

Which of the following is an objective of capital budgeting. Objectives of Capital Budgeting. Accounting questions and answers.

It is the discount rate that makes the Net Present Value equal to zero. Capital budgeting decisions affect the future stability of the firm. To earn a satisfactory return on investment.

The following are the objectives of capital budgeting. This process is also known as investment appraisal. The capital budget must clearly state criteria for meeting this objective.

The ultimate objective of the capital budgeting process is to achieve maximum benefit from the project. Which of the following is an objective of capital budgeting. Capital Budgeting is a part of.

Capital budgeting 1. The stability objective is related to the financial structure of a business ANS. To eliminate all risk.

To reverse past decisions. To reduce the number of investment activities. - Granting credit to a new customer.

For this purpose there are various techniques of capital budgeting which are as follows. Pay-back period can be calculated into the following two. To earn a satisfactory return on investment.

To eliminate all risk. CTo evaluate the value of investment. The following points present the objectives of the capital budgeting.

That means in this method discounted cash inflows are equal to discounted cash outflows. To reverse past decisions. To reduce the number of investment activities.

Capital budgeting decisions are a part of the overall financial. Which of the following statements about financial management is false. To discount all future and past cash flows.

It involves conducting a thorough evaluation of risks and returns before approving or rejecting a prospective investment decision. Objectives of Capital Budgeting. This is a treacherous objective since employees attempt to modify the budget to make their personal objectives easier to achieve known as budgetary slack.

Which of the following is a typical capital budgeting decision. What Are the Objectives of Capital Budgeting. The principal objective of capital budgeting is to Select one.

To discount all future and past cash flows. Estimating the cost of investment provides a base to the management for controlling and managing the required capital expenditure accordingly. For example the budget.

Organizations need to estimate the cost of investment as it allows them to control and manage the required capital expenditures. To eliminate all risk. AFinancial viability of the project.

- Purchase of office supplies. - Financing the firm with more long term debt and less equity. Capital budgets are the key control documents when it comes to the financial planning for long-term investments such as major equipment purchases land purchases renovations or new buildings.

Capital Budgeting is the process of making financial decisions regarding investing in long-term assets for a business. Objectives of Capital Budgeting. Control of Capital Expenditure.

BTo assess working capital requirement. To reduce the number of investment activities. Capital budgeting decisions are irreversible in nature.

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