Fairfax Pizza borrowed 525,000 dollars to build a new restaurant fort 525,000 dollars. The decision to spend 525,000 dollars on the restaurant is best classified as an example of what type of decision

Question

Chad Rose

Business

17 December, 14:38

Fairfax Pizza borrowed 525,000 dollars to build a new restaurant fort 525,000 dollars. The decision to spend 525,000 dollars on the restaurant is best classified as an example of what type of decision

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Rodolfo Simmons · Answer 1

Capital Budgeting decision

Explanation:

The capital budgeting decision refers to the decision with respect to long term investments like machinery that could be replaced or new, plant, new process, development cost, with the aim to gain the higher value that is exceeded to the spending amount.

In addition, it could be done by applying the various methods like internal rate of return, net present value, etc.

So, the given case represents the capital budgeting decision.