Question

What is capital budgeting? a. The process of managing cash flow. b. The analysis of real asset investment opportunities. c. The process of managing current assets. d. None of the above.

Answer 1

b. The analysis of real asset investment opportunities.

Step-by-step explanation:

Capital Budgeting is the Process of appraising various alternatives of investments.

It uses techniques such as the Net Present Value methods, Internal Rate of Return and Payback Period methods to analyze the best alternatives of investments.