What Is the Ultimate Goal of the Capital Budgeting Process

Multiple Choice

What is the ultimate goal of the capital budgeting process?

A) to determine how the consequences of making a particular decision affects the firms revenues and costs
B) to list the projects and investments that a company plans to undertake in the future
C) to forecast the consequences of a list of future projects to the firm
D) to determine the effect of the decision to accept or reject a project on the firms cash flows
E) to calculate the incremental earnings of a project