Chapter 26, Problem 30RQ

To determine

Consideration of both quantitative and qualitative factors while determining capital investment decisions describes the factors to be considered for taking decisions on capital Budgeting decisions and classifications of these factors as Quantitative and Quantitative. While considering the capital investment opportunities, the management will consider all the quantitative factors such as sales forecast, expected income earned from the project over the year, rate of return expected from the project, residual income earned over minimum rate of return fixed by the top level. It should also take in to consideration the Qualitative impact of the project on the business such as brand strength, employee’s motivation, customer support, reputation of the business, etc.

TheFactors referred as quantitative and qualitative, to be considered for taking capital investment decisions need to be determined.