is related to fixed assets
brings long-term benefits
brings short-term benefits only
has very large investment
Answer is Right!
Answer is Wrong!
The correct answer is:
C. brings short-term benefits only.A capital budgeting
proposal is a plan for a significant investment in a project or asset. The goal of capital budgeting is to make decisions that will maximize the long-term value of the company. Therefore, a proposal that brings short-term benefits only is not a capital budgeting proposal.Option A is incorrect because capital budgeting proposals can be related to fixed assets. For example, a company might propose to purchase a new piece of equipment.
Option B is incorrect because capital budgeting proposals can bring long-term benefits. For example, a company might propose to build a new factory.
Option D is incorrect because capital budgeting proposals can have very large investments. For example, a company might propose to acquire another company.