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Basic Question 1 of 29
Which of the following statements is correct?
II. Capital allocation process is the process of scheduling and managing the short-term cash flows of a firm.
III. Capital allocation process is the process of analyzing projects and deciding which ones to accept.
I. Capital allocation process is the process of choosing the types of debt and equity that will be used to finance investment projects.
II. Capital allocation process is the process of scheduling and managing the short-term cash flows of a firm.
III. Capital allocation process is the process of analyzing projects and deciding which ones to accept.
User Contributed Comments 4
| User | Comment |
|---|---|
| MRSLETS | got it |
| DonAnd | Capital budgeting is the process that companies use for decision making on capital projects |
| fabsan | I = Capital structure decision II = Working capital management decision |
| JLWM | Thanks for the clarification fabsan ! |
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Learning Outcome Statements
describe the capital allocation process, calculate net present value (NPV), internal rate of return (IRR), and return on invested capital (ROIC), and contrast their use in capital allocation
CFA® 2025 Level I Curriculum, Volume 2, Module 5.