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Exam (elaborations)

FINANCE 101 Chapter 12: The Capital Budgeting Decision- True / False Questions

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Chapter 12 The Capital Budgeting Decision True / False Questions 1. Capital budgeting decisions involve a minimum time horizon of five years. True False 2. A good capital budgeting program requires that a number of steps be taken in the decision making process. The first step is the explanation of data. True False 3. Possibly the most overlooked part of the capital budgeting process is the search for new opportunities through innovation and creative thinking. True False 4. In most capital budgeting decisions the emphasis should be on reported earnings rather than cash flows. True False

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