Question: Capital budgeting is both a decision making and control tool. Which of the following is an example of capital budgeting as a control tool? A.

Capital budgeting is both a decision making and control tool. Which of the following is an example of capital budgeting as a control tool?

A.

A company uses capital budgeting techniques to evaluate a group of prospective alternative projects.

B.

A company's capital project is not meeting the level of profitability expected, will not meet the targeted NPV, and is abandoned.

C.

When considering capital expenditures, a company looks at a minimum of six potential (alternative) projects.

D.

A large manufacturer sets up a "capital relief" fund to help supplement sustainability projects that would not meet targeted rates of returns without the capital relief fund assistance.

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