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Commerce · Q27

Business Finance

Graduate and Post Graduate · Commerce · question 27

Q27

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

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

Answer: Option D

Solution

Answer: Option D
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