Question

One of the most important financial management activities that a firm undertakes is its evaluation and allocation of investment funds to support its future survival and growth. These activities may be motivated by the desire to expand the firm's revenues, reduce its costs, or satisfy its mandatory or voluntary legal, health, and safety requirements. They may have, more or less, multiyear effects on the organization and may or may not be considered as capital budgeting activities. Capital budgeting is the process of: Planning and controlling investments in assets that are expected to produce cash flows for one year or less Planning and controlling investments in assets that are expected to produce cash flows for more than one year The capital budgeting process in a company involves evaluation of cash flows, risk analysis, correlation with the portfolio of projects in the company etc. To make this process more streamlined, firms identify whether the projects qualify as a capital budgeting project or not and generally analyze them in different vertical categories. Which of the following are examples of a capital budgeting project? Check all that apply. Universal Computer Corp.'s purchase of a new building Atlanta Aeronautics Co.'s expenditures for the company's advertising campaign European Satellite Corp.'s purchase of monthly office supplies

Answer 1

1) The correct statement is statement no. 2

2) Universal computer cor's purchase of a new building

3) The correct statements are statement 2 and 3