Which of the Following Statements Is Correct

question 81

Multiple Choice

Which of the following statements is correct?

• A)Capital budgeting analysis is not a framework for evaluating all business decisions; it is only a tool for the "financial" types.
• B)Proper analysis will identify irrelevant cash flows and an appropriate discount rate to reflect the risk of the strategy and will compare the benefits and costs of the project without considering the time value of money.
• C)Whether the investment is one in a business strategy, building a new warehouse, seeking fuel efficient methods of doing business, upgrading information technology systems, or investing in human resources, we should not try to quantify the benefits and cost of these choices in order to evaluate them properly.
• D)To achieve success over time, a firm's managers must identify and invest in projects that provide higher than average profits to maximize shareholder wealth.
• E)none of the above statements are correct

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Definitions:

Reliability Ratings

Measurements or estimates that indicate the dependability or consistency of a product, service, or system's performance.

6-Sigma Standards

A set of techniques and tools for process improvement that aims to reduce defects and variability in manufacturing and business processes.

Tolerance-Check Process

A procedure for verifying that production output or operations are within acceptable deviations or tolerances from a specified standard or target.

Automated Tolerance-Check

An Automated Tolerance-Check is a digital process for verifying if an object, component, or system falls within specified limits or tolerances.