chandreashna143
Answered

Which of the following statement is not true for capital budgeting?
O a. Capital budgeting decisions are reversible in nature,
O b. Business expansion decision is a capital expenditure dedision,
O a Capital budgeting decisions affect the future stability of the firm
O d. Sunk cost is an irrelevant cost in capital budgeting​

Answer :

reamie122

Answer:

a.

or Opportunity costs are excluded

Explanation:

Capital budgeting decisions involve huge funds and are long term decisions. As they involve huge costs one wrong decision would have a big effect on the business. They include all the potential expenses/costs. It includes opport

unity cost, actual cost, incremental and relevant cash flows. It does not include sunk costs.

ayokenny2001

The wrong statement is sunk cost is an irrelevant cost in capital budgeting​.

What is capital budgeting?

Capital budget is a budget meant for the continuous maintenance of the asset of an organization.

The assets involve in capital budgeting are :

  • Land
  • Building
  • Equipment

Hence, the wrong statement is sunk cost is an irrelevant cost in capital budgeting​.

Learn more about capital budgeting here: https://brainly.com/question/17439061

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