Capital Budgeting Decisions are __________.

Reversible

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Irreversible

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Unimportant

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All of the above

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Solution

The correct option is B Irreversible
Capital budgeting decisions involve huge funds and are long term decisions. As they involve huge costs one wrong decision would have a big effect on the business. Hence, capital budgeting decisions are irreversible as its difficult to take back the decision.

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Similar questions

''A capital budgeting decision is capable of changing the financial fortunes of a business''. Do you agree? Why or why not?

Capital budgeting decisions are important because:

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