Asked by kirston seldon on Jul 04, 2024
Verified
Which of the following would not be considered a good managerial tool in making a decision for determining a capital investment?
A) evaluating further assets that are dissimilar in nature or have different useful lives
B) using only quantitative measures to evaluate asset purchases
C) analyzing lease versus purchase option
D) considering income tax ramifications
Capital Investment
Funds spent by a company to purchase, maintain, or improve physical assets such as property, industrial buildings, or equipment.
Quantitative Measures
Metrics or data points that can be quantified numerically to assess performance, trends, or changes over time.
Asset Purchases
Transactions involving the acquisition of physical or intangible assets that are expected to generate economic benefits for the business.
- Identify the managerial tools and considerations relevant to capital investment decisions.
Verified Answer
Learning Objectives
- Identify the managerial tools and considerations relevant to capital investment decisions.
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