Answer (C) is correct . Capital budgeting is concerned with long-range decisions, such as whether to add a product line, to build new facilities, or to lease or buy equipment. Any decision regarding cash inflows and outflows over a period of more than 1 year probably needs capital budgeting analysis.
Answer (A) is incorrect because Capital budgeting is useful for all long-range decision making.
Answer (B) is incorrect because Capital budgeting is not useful for short-range decisions.
Answer (D) is incorrect because It is a nonsense answer.
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