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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?

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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Transcribed Image Text: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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