Respuesta :
Answer:
D. All the above are capital budgeting decisions
Explanation:
Capital budgeting is the process of deciding whether or not to spend money on the buying or renovation, improvement or expanding of a fixed asset, or a long term project. In this process it is judged based on the return and the risk whether an investment is worth it.
Deciding to build a new plant is a capital budgeting decision because the company is deciding whether to spend money on a new fixed asset.
Deciding to renovate an existing facility is also a capital budgeting decision because the company is deciding whether to spend money on an existing fixed asset and will it increase returns or not.
Decision to buy machinery is also a capital budgeting decision as the company is deciding whether to buy new fixed assets or not.
So the answer is that all of the above are capital budgeting decisions.
