Which of the following would not be a classification of a capital budgeting proj
ID: 2790630 • Letter: W
Question
Which of the following would not be a classification of a capital budgeting project?
A regulatory project
An expansion project
A study by Greenpeace to determine the harm to the ozone layer caused by all the hairspray used by Donald Trump
A replacement project
All of the above are examples of capital budgeting projects
a.A regulatory project
b.An expansion project
c.A study by Greenpeace to determine the harm to the ozone layer caused by all the hairspray used by Donald Trump
d.A replacement project
e.All of the above are examples of capital budgeting projects
Explanation / Answer
Ans C) A study by Greenpeace to determine the harm to the ozone layer caused by all the hairspray used by Donald Trump.
Capital budgeting process is a process in which a business determines potential expenses or investments that are large in nature.
In point C there is no investment decision, thus it is not a capital budgeting decision.
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