Question
Which of the following is NOT a capital budgeting
decision?Solution
Capital budgeting decisions involve evaluating and selecting long-term investment projects or expenditures that have significant financial implications for the organization. Options a, b, and d all involve long-term investment decisions. On the other hand, option c, the purchase of raw materials, is not a capital budgeting decision. The purchase of raw material is typically part of the day-to-day operational activities and falls within the realm of working capital management rather than capital budgeting.
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