In Which of the Following Situations Would It Not Be

question 6

Multiple Choice

In which of the following situations would it not be useful to apply the concepts and techniques used in capital investment decisions?

• A) A company is considering the purchase of a new machine that would reduce the cost of direct labour in the production process.
• B) A company is comparing the profitability and capital investments of two district offices to determine which one has the best current return on investment.
• C) A company is reviewing the past performance of two investment projects to determine which project had the best five-year return on the investment made.
• D) A company is evaluating the potential investment in research and development expenses to develop a new product line.

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Definitions:

Organizational Strategy

A long-term plan of action designed to achieve a particular goal or set of goals or objectives within an organization.

Project Objectives

Specific, measurable goals that are set to be achieved within a defined timeframe for a project.

Outcomes and Deliverables

The results, products, or achievements that are expected to be provided upon the completion of a project or process.

Gantt Chart

A type of bar chart that illustrates a project schedule and shows the dependency relationships between tasks.