✓ Board-verified
Business Studies · 2022 · 3 marks
CBSE 2022 · Region 4 · Set 1 · Q6
State any three factors affecting the capital budgeting decision of a
company.
Marking-scheme solution
Factors affecting capital budgeting decision of a company
are:
(i)
Cash flows of the project in the form of series of cash receipts
and payments over the life of an investment.
(ii)
Rate of return of the project i.e., expected returns from each
proposal and the assessment of the risk involved.
(iii)
Investment criteria involved i.e., calculations regarding the
amount of investment, interest rate etc.
More from Financial Management
- Read the following statements carefully: Statement I: Higher fixed operating costs result in higher business…2026
- Match the factors affecting fixed capital requirements given in the Column-I with their explanations given in…2023
- 'Payal Ltd.' plans to start manufacturing solar panels which will require a significant amount of investment…2025
- State any four factors that affect the decision related to how much profit is to be distributed and how much…2023
- The risk related to inability to meet fixed financial charges like interest payment and other repayment…2025
- ‘Ratan Ltd.’ and ‘Lara Ltd.’ are two companies with each having a capital employed of ₹ 20,00,000. ‘Ratan…2026
- ‘Zenith Mall’ is a famous shopping mall in Mumbai, owned by ‘Pinnacle Group'. It is very popular for its…2023
- refers to the increase in profit earned by the equity shareholders due to the presence of fixed financial…2023
CBSE Class 12 Business Studies past-paper question from the 2022board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.