GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Screening of the proposals
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Evaluation of various proposals
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Identification of investment proposals
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All of the above
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Detailed explanation-1: -Capital budgeting is used by companies to evaluate major projects and investments, such as new plants or equipment. The process involves analyzing a project’s cash inflows and outflows to determine whether the expected return meets a set benchmark.
Detailed explanation-2: -Capital Budgeting is the process of making financial decisions regarding investing in long-term assets for a business. It involves conducting a thorough evaluation of risks and returns before approving or rejecting a prospective investment decision. This process is also known as investment appraisal.
Detailed explanation-3: -#1 – To Identify Investment Opportunities. Example: #2 – Gathering of the Investment Proposals. Example: #3 – Decision Making Process in Capital Budgeting. Example: #4 – Capital Budget Preparations and Appropriations. Example: #5 – Implementation. Example: #6 – Review of Performance. Example: