Question

The ultimate goal of the capital budgeting process is to​ ________. A. list the projects and investments that a company plans to undertake in the future B. forecast the consequences of a list of future projects for the firm C. determine how the consequences of making a particular decision affects the​ firm's revenues and costs D. determine the effect of the decision to accept or reject a project on the​ firm's cash flows

Answer 1

Answer:

The correct option which represents the ultimate goal of capital budgeting is D) .

Explanation:

Capital budgeting is a kind of planning process which an organization undertakes to see if the investments or projects ( usually long term ) they are considering to invest in are worth funding . This process actually begins with the compiling a list of potential future projects. The ultimate goal of this process is to estimate what would be the effect on organizations cash flow , if a project is accepted or rejected.