Answer:True
Step-by-step explanation:
This refers to the decision making that a companies follows with regards to which capital intensive project they should pursue. Such capital intensive projects could be anything from opening a new factory to a significant workforce expansion, entering a new market, or the research and development.
It is also noted that most big companies use their own processes to evaluate project in place, there are few practices that should be used as gold standard of capital budgeting. This can help to guarantee the fairest project evaluation. A fair project evaluation process tries to eliminate all non project related factors and focus purely on assessing a project as a stand alone opportunity.