Engineering Economy
Engineering Economy
8th Edition
ISBN: 9780073523439
Author: Leland T Blank Professor Emeritus, Anthony Tarquin
Publisher: McGraw-Hill Education
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Chapter 12, Problem 1P
To determine

The characteristics of capital budget study.

Expert Solution & Answer
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Explanation of Solution

The first characteristic of capital budget is that it identifies more independent alternatives with the estimated cash flow of each alternative. The second characteristic is that this study would select all the independent alternatives or reject all the alternatives based on the budget constraint. The third characteristics of this study is that it maximizes the benefit received from the alternatives with the limited budget.

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