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Asked by Ja-Juan Victor on Apr 27, 2024

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Capital budgeting decisions are not affected by return on investment considerations.

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit from an investment by the cost of the investment.

Capital Budgeting

The process businesses use to evaluate and select long-term investments such as new machinery, replacement machinery, new plants, new products, and research development projects.

  • Recognize the importance of return on investment considerations in capital budgeting.
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MW
Melody WhittakerMay 03, 2024
Final Answer :
False
Explanation :
Capital budgeting decisions are heavily influenced by return on investment considerations, as the main goal is to select projects that will generate positive returns and create value for the company.

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