An example of a capital budgeting decision is deciding: a. how many shares of stock to issue. b. whether or not to purchase a new machine for the production line. c. how to refinance a debt issue that is maturing. d. how much inventory to keep on hand. e. how much money should be kept in the checking account.

Respuesta :

Answer:

B) whether or not to purchase a new machine for a productoin line is a capital budgeting decision.

Explanation:

Capital Budgeting deals with investment decisisons especially during planning in any organisation. Usually the kind of investment is long-term involving decisions on starting a new product, replacing an old equipment, getting a new machinery for a new line of business. The significance or pointer to capital budgeting is that it is capital intensive and therefore requires careful deliberations

Based on the definition, whether or not to purchase a new machine for a productoin line is a capital budgeting decision.

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