1. which of the following is not an example of a capital budgeting decision? a. decision to build a new plant b. decision to renovate an existing facility c. decision to buy machinery d. all the above are capital budgeting decisions

D. All the above are capital budgeting decisions

Explanation:

Capital budgeting is the process of deciding whether or not to spend money on the buying or renovation, improvement or expanding of a fixed asset, or a long term project. In this process it is judged based on the return and the risk whether an investment is worth it.

Deciding to build a new plant is a capital budgeting decision because the company is deciding whether to spend money on a new fixed asset.

Deciding to renovate an existing facility is also a capital budgeting decision because the company is deciding whether to spend money on an existing fixed asset and will it increase returns or not.

Decision to buy machinery is also a capital budgeting decision as the company is deciding whether to buy new fixed assets or not.

So the answer is that all of the above are capital budgeting decisions.

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