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Author Question: When making the decision to replace an old factory machine with a new one, financial and ... (Read 41 times)

ninaj

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Question 1

Investing in a capital project may involve making screening decisions, preference decisions, and funding decisions. Discuss how each of these decisions is made, the goal of each, and give an example of each.

Question 2

When making the decision to replace an old factory machine with a new one, financial and non-financial factors are considered. As with any investment, a company investing in factory machinery expects that the new machinery will generate a future return.

Required:

a.Define the two types of returns that can be expected from investments in a long-term
asset such as factory machinery.
b.List three financial factors that a company might consider before making an
investment
in factory machinery.
c.List three non-financial factors that a company might consider before making an
investment in factory machinery.
d.List one cost that is not included in a decision to replace an old factory machine with
a new one.


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Marked as best answer by ninaj on Feb 5, 2023

fowlerhop@rocketmail.com

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ninaj

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Reply 2 on: Feb 5, 2023
Excellent


sailorcrescent

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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