Purchasing a new machine to replace an existing one is an example of _____.

(a) Dividend decision

(b) Working capital decision

(c) Financing decision

(d) Capital budgeting decision

Answer (d) Capital budgeting decision

Explanation: Capital budgeting is utilised by organisations to assess significant activities and ventures, like new plants, equipment, and machinery. The process includes investigating and analysing a venture’s cash inflows and outflows to decide if the normal rate of return meets a set benchmark.

Was this answer helpful?


0 (0)


Choose An Option That Best Describes Your Problem

Thank you. Your Feedback will Help us Serve you better.

Leave a Comment

Your Mobile number and Email id will not be published. Required fields are marked *




Free Class