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Capital budgeting decisions

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Why are capital budgeting decisions perhaps the most important financial decisions that a company can make?

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The solution discusses why capital budgeting decisions are perhaps the most important financial decisions that a company can make.

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Capital budgeting is a formal means of analyzing long-range investment decisions. Through this process potential investments are identified and the investments to undertake are selected. It is the process by which the firm decides which long-term investments to make. Capital Budgeting projects, i.e., potential long-term investments, ...

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