Ch 11 Flashcards
1
Q
What is capital budgeting?
A
How managers plan significant investments in projects that have long-term implications such as the purchase of new equipment or the introduction of new products
2
Q
What are the two categories of capital budgeting decisions?
A
Screening and preference
3
Q
What are screening decisions?
A
Relate to whether a proposed project is acceptable
4
Q
What are preference decisions?
A
Relate to selecting from among several acceptable alternatives
