Questions and Answers
What is a key aspect of capital budgeting?
Allocation of capital in permanent assets
What is the primary goal of maintaining a balance between fixed and current assets?
To maximize profitability and maintain liquidity
What makes capital budgeting a difficult decision?
The uncertainty of estimating costs and benefits
What is a secondary aspect of capital budgeting?
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What is the impact of capital budgeting on a firm's success?
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