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

<p><strong>(a) Capital budgeting is related to asset replacement decisions,</strong></p> <p><strong>(b) Cost of capital is equal to minimum required return,</strong></p> <p><strong>(c) Existing investment in a project is not treated as sunk cost,</strong></p> <p><strong>(d)Timing of cash flows is relevant.</strong></p> <p> </p>

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/09/22
Khaled Mohee Eldeen Abbas Mahmoud
by Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

the answer is C

 

Khaled Abdelrehim ACCA DipIFR CMA
by Khaled Abdelrehim ACCA DipIFR CMA , Financial Analysis Assistant General Manager , Khalda Petroleum Company

Answer C

Sara Khan
by Sara Khan , financial and admin assistant , Ministry Of Defence

Go with all previous message..C is answer

Ahmed Abd Alwahab Awad Ibrahim
by Ahmed Abd Alwahab Awad Ibrahim , Chief Accounting , ICCDP

(c) Existing investment in a project is not treated as sunk cost

Kamran Anjum
by Kamran Anjum , Head of Internal Audit , Rafhan Maize Products Company limited, Faisalabad, Pakistan, Ingredion Incorporated Gmbh

Option C is the right answer.

Muhammad Qureshi
by Muhammad Qureshi , ManagerBusiness Development , Aeromotive Technologies

I woud consider  Capital budgeting is related to asset replacement decisions but i would seek direction from CFO

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

option c is correct  answer  

Ravshanbek Abdullaev
by Ravshanbek Abdullaev , Accountant , Fajr Al Mustaqbal General Trading LLC

option c is the right choice

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