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[Solved] In capital budgeting which of the following is used as a cap[Solved] Which one of the following methods of Capital Budgeting assuRelevant costsWhich of the following is not true capital budgeting?Incremental cash flows are consideredOpportunity costs are excludedRelevant cash flows are consideredSunk costs are ignoredA Capital budgeting is related to asset replacement decisions B Existing investment in a project is not treated as sunk cost C Cost of capital is equal to minimum required return D Timing of cash flows is relevant
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Capital budgeting and investment appraisal, is the planning process used to determine whether an organization's long term investments such as new machinery, replacement of machinery, new plants, new products, and research development projects are worth the funding of cash through the firm's capitalization structure therefore existing investment in a project is treated as sunk cost.
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