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5 October, 13:27

Which of the following is NOT a category for capital budgeting decisions? a. Selection decisions b. Screening decisions c. Preference decisions

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  1. 5 October, 13:32
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    a. Selection decisions

    Explanation:

    Capital Budgeting decisions is basically divided in two broad categories that are:

    Screening Decisions: This is the decision made by any company while making a capital budgeting decision that the company will accept the project based on companies specific criteria.

    It might be based on cash flow, or required return etc:

    Preference Decisions: When the company evaluates two or more projects then it makes a decision as to which project shall be favorable. Then the priority list is created.

    There is no selecting decisions in the capital budgeting decisions.
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