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Which of the following makes using present value approaches in capacity decisions difficult? Multiple Choice Capacity decisions are made amidst much uncertainty, so cash flows
Which of the following makes using present value approaches in capacity decisions difficult?
Multiple Choice
Capacity decisions are made amidst much uncertainty, so cash flows cannot be estimated with great accuracy.
The payback period might not be long enough to justify a capacity decision.
There is a cash outflow at the outset followed by possibly, net cash inflows.
The discount rate must be adjusted to account for inflation.
Some cash flows are positive and other cash flows are negative.
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