Chapter 10 Question 1 Which of the following is NOT true about capital budgeting

Question

Chapter 10 Question 1 Which of the following is NOT true about capital budgeting. a.It involves identifying projects that will add to the firm's value. b.The large capital investments can be reversed at any time. c.It involves large capital investments. d.It allows the firm's management to analyze potential business opportunities and decide on which ones to undertake. Question 2 Two projects are considered to be contingent projects if a.selecting one would automatically eliminate accepting the other b.none of these c.the acceptance of one project is dependent on the acceptance of the other d.rejection of one project does not eliminate the selection of the other Question 3 Capital rationing implies that a.funding resources exceed funding needs b.none of these c.funding needs exceed funding resources d.funding needs equal funding resources

Explanation / Answer

c.It involves large capital investments.

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