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

Question

TuteeHUB · Accepted Answer

Timing of cash flows is relevant.

TuteeHUB · Answer

Capital budgeting is related to asset replacement decisions,

TuteeHUB · Answer

Cost of capital is equal to minimum required return,

TuteeHUB · Answer

Existing investment in a project is not treated as sunk cost,

1.	Which of the following is not true with reference capital budgeting?
A.	Capital budgeting is related to asset replacement decisions,
B.	Cost of capital is equal to minimum required return,
C.	Existing investment in a project is not treated as sunk cost,
D.	Timing of cash flows is relevant.
Answer» D. Timing of cash flows is relevant.

Discussion