Answer: Types of decisions would need to be made before the investment is made can be explained through such as the first prefrence should be given to the cash expenses which includes the invoice price of all items that will be obtained, costs to ship, a cost to install and test, legal fees, commissions or cost to redirect the organization to accept the new item. Then follow by selling off old item (replacement) or salvage items from the old process that discontinue because of this investment. This amount reduces initial cash expense. Thorough consideration and market study helps in better investment methods as well as lowers the risk of the loss.
What types of decisions would need to be made before the investment is made? Indicate the...
List some of the kinds of information that is needed to evaluate a capital investment project.
1. Payback period is one of the nondiscounting models used in capital investment decisions. What are some of the pros and cons associated with this model? 2. What is a capital investment and why do companies need to evaluate whether to make the investment or not? 3. Why do come companies prefer to use discounting in their capital investment decisions? What is a risk associated with this discounting model?
what are the levels of organization and what types of decisions are made of each level
Production and operations management involves three main types of decisions that are made at three different stages. The final stage of operations management focuses on:
You own a business and need to constantly make financial decisions. What are the three types of financial management decisions? For each type of decision, give an example of a business transaction that would be relevant in your business.
Completely and thoroughly explain the different inventory management decisions that would need to be made to successfully operate and manage a hardware (home improvement) store. You need to clearly explain the impact your inventory management recommendations will have on costs, profits, and customer satisfaction.
Most decisions made by management impact the ratios analysts use to evaluate performance. Indicate (by letter) whether each of the actions listed below will immediately increase (I), decrease (D), or have no effect (N) on the ratios shown. Assume each ratio is greater than 1.0 before the action is taken. Note: Asumme each ratio is greater than 1.0, instead of less. Acid-Test De bt to Current Equlty Ratio Ratio Action Ratio 1. Issuance of long-term bonds 2. Issuance of short-term...
Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm’s strategic goals. Companies often use several methods to evaluate the project’s cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that apply. For most firms, the reinvestment rate assumption...
Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm's strategic goals Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that apply. Managers have been slow to adopt the...
Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that apply. For most firms, the reinvestment rate assumption...