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Question

Capital budgeting decisions determine the ________________.

A
Past destiny of the company
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B
Present destiny of the company
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C
Future destiny of the company
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D
All the above
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Solution

The correct option is B Future destiny of the company
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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