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Match Each One of the Examples Below with One of the Stages

question 18

Essay

Match each one of the examples below with one of the stages of the capital budgeting decision model.
Stages:
1. Identify Projects
2. Obtain Information
3. Make Predictions
4. Make Decisions by Choosing Among Alternatives
5. Implement the Decision, Evaluate Performance, and Learn

___a. Issuing corporate stock for the funds to purchase new equipment
___b. Learning how to effectively operate Machine \#8 only takes 15 minutes
___c. The need to reduce the costs to process the vegetables used in producing goulash
___d. Monitoring the costs to operate a new machine
___e. Percentage of defective merchandise considered too high
___f. Will introducing the new product substantially upgrade our image as a producer of quality products?
___g. Estimating yearly cash flows and setting investment bud gets accordingly using a 12-year planuning horizon.
___h. Use of the internal rate of return for eachalternative
___i. Tracking realized cash flows and comparing against estimated numbers.


Definitions:

Brake

A device used for slowing or stopping a moving vehicle, typically by applying pressure to the wheels.

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, connecting the central nervous system to limbs and organs.

Radio

A technology for transmitting and receiving audio content through electromagnetic waves without requiring a direct line of sight.

Receiver

In communication, the party that receives and processes a message from a sender.

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