Which of the following is not one of the considerations give

Which of the following is not one of the considerations given to capital budgeting proposals?

Select one:

A. Whether there is an immediate need to replace or repair critical assets

B. Whether the proposal is in compliance with capital budgeting policies

C. Whether the proposal would meet the established minimum return on capital

D. Whether the proposal is congruent with the firm\'s long-term goals

E. All of the above are considerations given to capital budgeting proposals

Solution

The correct answer is Option \'E\': All of the above are considerations given to capital budgeting proposals.

Whenever a capital budgeting proposals are undertaken, it is analysed whether there is need to replace or repair critical assets. The concerned proposals should be in compliance with capital budgeting policies and should meet the established minimum return on capital.

The Capital Budgeting Proposals should be regarding annd congruent with the long term objectives of the company.