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Management · Q1050

Financial Management

Graduate and Post Graduate · Management · question 1050

Q1050

Which of the following is not true with reference capital budgeting?

A.
Capital budgeting is related to asset replacement decisions
B.
Cost of capital is equal to minimum required return
C.
Existing investment in a project is not treated as sunk cost
Answer
D.
Timing of cash flows is relevant

Answer: Option C

Solution

Answer: Option C
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