Concept introduction:
Capital budgeting is a technique to evaluate investment opportunities and to make investment decisions. Under the capital budgeting, there are several techniques like
To indicate: The difference between the capital budgeting screening decision and the capital budgeting preference decision.
Explanation of Solution
Capital budgeting evaluates investment projects by identifying future
Under the capital budgeting, there are several techniques like NPV analysis, IRR analysis which are used to evaluate the projects. The capital budgeting preference decision is the next step to screening. In this step, all the screened projects are compared, and preference is given to the most valuable projects.
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