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Eturns look attractive on a personal and financial basis. Discuss this statement. Q18.1 ANSWER The decision to start your own firm and go into business can indeed be thought of as a capital budgeting decision. You only go for it if projected returns look attractive on a personal and financial basis. Formally, capital budgeting is described as the process of planning expenditures that generate cash flows expected to extend beyond one year. The choice of one year is arbitrary, of course, but it.

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