In Selecting Capital Projects, Organizations Choose

question 37

Multiple Choice

In selecting capital projects, organizations choose

• A)the alternative that matches the RRR.
• B)the alternative that has revenues that exceed its costs.
• C)the alternative that has the highest revenues.
• D)the alternative that has the longest time horizon, but also exceeds the RRR.
• E)the alternative that provides benefits that exceed predicted costs by the greatest amount.

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Definitions:

Evaluation Criteria

Standards or benchmarks used to assess the performance, quality, or suitability of products, services, or projects.

Value Proposition

A business or marketing statement that summarizes why a consumer should buy a product or use a service.

Inventory Costs

The total cost associated with holding and managing inventory, including warehousing, depreciation, insurance, and potential obsolescence.

Single Sourcing

A procurement strategy where a company relies on a single supplier for a particular component or product.