Managers Are Often Correct That the Company Would Benefit from Advanced

question 15

Multiple Choice

Managers are often correct that the company would benefit from advanced manufacturing technology.However,the present value of future cash flows analysis usually results in a negative net present value for the investment because of the

• A)hurdle rate being set too high and there is a bias toward incremental projects.
• B)uncertainty about operating cash flows.
• C)exclusion of benefits that are difficult to quantify.
• D)all of the above.

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Definitions:

Statement of Cash Flows

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company, showing how the company manages its cash position over a period.

Cash Balance

The amount of liquid funds available in a company's cash account at any given time.

Cash Outflow

The total amount of money leaving a company, encompassing expenses, investments, and other payments within a given period.

Pays Supplier

The process of remitting payment to suppliers for goods or services received, which is crucial for sustaining business operations and relationships.