Which one of the following is a capital budgeting decision?
-Determining how many shares of stock to issue.
-Deciding whether or not to purchase a new machine for the production line.
-Deciding how to refinance a debt issue that is maturing.
-Determining how much inventory to keep on hand.
-Determining how much money should be kept in the checking account.
Answer: Deciding whether or not to purchase a new machine for the production line.