Question

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

Answer 1

Answer:

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.