COST ACCOUNTING
CAPITAL BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Define CAPITAL BUDGETING
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the annual rate of growth an investment is expected to generate.
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process of determining whether or not a long-term investment in a project is worthwhile.
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used in capital budgeting and investment planning to analyze the profitability of a projected investment or project.
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refers to the amount of time it takes to recover the cost of an investment.
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Explanation:
Detailed explanation-1: -Capital budgeting is the process by which investors determine the value of a potential investment project. The three most common approaches to project selection are payback period (PB), internal rate of return (IRR), and net present value (NPV).
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