MANAGEMENT

BUISENESS MANAGEMENT

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which one is not a factor affecting capital budgeting decision
A
Rate of return
B
Cash flow of the project
C
Investment criteria
D
Flotation cost
Explanation: 

Detailed explanation-1: -The correct option is ii. inventory level.

Detailed explanation-2: -These are: funds involve, rate of interest, rate of return, cash flow, etc. All these factors influence the decision to go for a particular investment or not. For the same purpose, capital budgeting techniques are applied and accordingly decisions are taken.

Detailed explanation-3: -Diversification is not a factor determining the capital structure.

Detailed explanation-4: -Accrual principle is not followed in capital budgeting.

There is 1 question to complete.