Which among the following is a factor affecting Capital Budgeting Decision?
Which among the following is a factor affecting Capital Budgeting Decision?
Solution
✅ Correct Option: 4
As per NCERT, capital budgeting decisions depend on the project's cash flows, the rate of return and the investment criteria involved. Flotation costs and flexibility affect capital structure/financing decisions. Hence the rate of return is the factor affecting capital budgeting.
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