QUESTION 1 Which one of the following statements is related to capital budgeting

Question

QUESTION 1
Which one of the following statements is related to capital budgeting? a. A firm should consider the size, risk, and timing of an asset's cash flows before deciding to purchase that asset. b. A firm should consider various types of loans offered by various lenders before taking out a loan. c. A firm should determine the ideal level of inventory that should be kept on hand. d. A firm should monitor the amount of its current assets as compared to its current liabilities. e. A firm should monitor the ratio of debt to equity financing which it uses.
QUESTION 1
Which one of the following statements is related to capital budgeting? a. A firm should consider the size, risk, and timing of an asset's cash flows before deciding to purchase that asset. b. A firm should consider various types of loans offered by various lenders before taking out a loan. c. A firm should determine the ideal level of inventory that should be kept on hand. d. A firm should monitor the amount of its current assets as compared to its current liabilities. e. A firm should monitor the ratio of debt to equity financing which it uses.
QUESTION 1
Which one of the following statements is related to capital budgeting? a. A firm should consider the size, risk, and timing of an asset's cash flows before deciding to purchase that asset. b. A firm should consider various types of loans offered by various lenders before taking out a loan. c. A firm should determine the ideal level of inventory that should be kept on hand. d. A firm should monitor the amount of its current assets as compared to its current liabilities. e. A firm should monitor the ratio of debt to equity financing which it uses.

Explanation / Answer

a.

A firm should consider the size, risk, and timing of an asset's cash flows before deciding to purchase that asset.

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