Quiz Ch 11 – T/F Ideal Factors in Capital Budgeting Decisions: Cash Flows and Opportunity Cost

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: In principle, capital budgeting choices ought to be based exclusively on projected cash flows and the cost of capital's opportunity. These decisions should remain uninfluenced by managerial preferences, accounting methodology, or the profitability of unrelated projects.

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  • Search Terms: a. b. false true accounting affected and be budgeting by capital capital. cash choice cost criterion decision decisions depend flows forecasted in independent managers' method, not of on opportunity or other profitability projects. should solely tastes, the theory,
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