Characteristics of capital budgeting decisions
Please explain what some characteristics are of capital budgeting decisions.
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The investment decisions of a firm are generally known as the capital budgeting, or capital expenditure decisions. These decisions would generally include expansion, acquisition, modernization and replacement of the long-term assets. Sale of a division or business (divestment) is also as an investment decision.
Decisions like the change in the methods of sales distribution, or an advertisement campaign or research and development programs have long-term implications for the firm’s expenditures and benefits, and therefore, …
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