Question

Capital budgeting is the process Question 2 options: used in sell or process further decisions.
of determining how much capital stock to issue.
of making capital expenditure decisions.
of eliminating unprofitable product lines.

Answer 1

Answer:

Capital budgeting is the process "of making capital expenditure decisions"

Explanation:

Capital budgeting is a planning process employed by a firm's management to evaluate if embarking on long-term investments (like purchase of a new machinery, replacement of old non-current assets, new product line, etc) are viable and profitable.

Decisions made by management must be informed decisions and one of the ways in which an investment decision can be evaluated to check if it is worthwhile is the capital budgeting process