Answered: Capital investments can be very risky;… | bartleby

Entrepreneurial Finance

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter2: Developing The Business Idea

Section: Chapter Questions

Problem 6EP

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Capital investments can be very risky; they are usually long-term decisions that require large sums of cash. Since every department will want capital
improvements and cash is usually scarce, it is imperative that management make the right decisions.
When determining the minimum required rate of return, what should management consider?
What qualitative factors should also go into the decision?
totol Original Post must be a minimum of 50 words and must be written in a business communication style. A response to a

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In this comprehensive paper, assume you are working with the accounting department in your organization to make a decision regarding a capital investment you feel is needed to improve productivity in your department. The organization has limited resources and you are trying to prove why your department needs the resources more than other departments in the company. Provide an example of a possible capital investment to use in your argument to management that will be used throughout your paper. Give some examples of the types of non-financial factors that managers would consider in this decision that are more important in today's capital investment decisions than they were in the past.
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you are working with the accounting department in your organization to make a decision regarding a capital investment you feel is needed to improve productivity in your department. The organization has limited resources and you are trying to prove why your department needs the resources more than other departments in the company. Provide an example of a possible capital investment to use in your argument to management.
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