Question

Capital budgeting cash flow analyses typically use annual (as opposed to weekly, monthly, or other shorter periods) cash flows.

(A) True
(B) False

Answer 1

True

Step-by-step explanation:

cash budgeting is referred to as the approach of finding the best project among all to determine which project needs to be invested. The main motive behind implementing the cash budgeting is to gain a high return on investment.

The three methods by which cash budgeting implemented are:

- throughout analysis

- discounted analysis of cash flow

- Payback analysis.