Question
Match each one of the examples below with one of the stages of the capital budgeting decision model. Stages : 1. Identify Projects 2. Obtain
Match each one of the examples below with one of the stages of the capital budgeting decision model.
Stages:
1. Identify Projects
2. Obtain Information
3. Make Predictions
4. Make Decisions by Choosing Among Alternatives
5. Implement the Decision, Evaluate Performance, and Learn
________ a. The need to reduce the costs to process the vegetables used in producing goulash
________ b. Learning how to effectively operate Machine #8 only takes 15 minutes
________ c. Issuing corporate stock for the funds to purchase new equipment
________ d. Monitoring the costs to operate a new machine
________ e. Will introducing the new product substantially upgrade our image as
a producer of quality products?
________ f. Percentage of defective merchandise considered too high
________ g. Estimating yearly cash flows and setting investment budgets accordingly using a 12-year planning horizon.
________ h. Use of the internal rate of return for each alternative
________ i. Tracking realized cash flows and comparing against estimated numbers.
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