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Business Studies · 2022 · 3 marks
CBSE 2022 · Region 4 · Set 1 · Q6
State any three factors affecting the capital budgeting decision of a company.
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.
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CBSE Class 12 Business Studies past-paper question from the 2022 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.