Question

What is the purpose of a feasibility study in Capital Budgeting?

a.

Determining market demand and price

b.

Analyzing social infrastructure

c.

Estimating financial ratios

d.

Evaluating the commercial viability of technology

Posted under IC 89 Management Accounting

Answer: (a).Determining market demand and price Explanation:The feasibility study in Capital Budgeting aims to determine market demand and price, among other aspects, before making any investment.

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