GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The investment of long term funds is made after a careful assessment of the various projects through
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Sales
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Fund flow
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Cost of capital
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Capital budgeting
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Explanation:
Detailed explanation-1: -Capital budgeting is a method of estimating the nancial viability of a capital investment over the life of the investment. Unlike some other types of investment analysis, capital budgeting focuses on cash ows rather than prots.
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.
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