When Making Investment Decisions That Involve Advanced Manufacturing Systems, the Use

question 16

Multiple Choice

When making investment decisions that involve advanced manufacturing systems, the use of net present value:

• A) presents no special problems for the analyst.
• B) often gives rise to net-present-value figures that are negative despite a manager's belief that the investment is beneficial for the firm.
• C) should be coupled with Pareto diagrams.
• D) often omits a number of factors that are difficult to quantify (e.g., greater manufacturing flexibility, improved product quality, and so forth).
• E) Both often gives rise to net-present-value figures that are negative despite a manager's belief that the investment is beneficial for the firm and often omits a number of factors that are difficult to quantify (e.g., greater manufacturing flexibility, improved product quality, and so forth).

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Definitions:

Leader

A person who influences and guides others within a group or organization towards achieving goals and objectives.

Nominal Group Technique

A structured method for group brainstorming that encourages contributions from everyone.

Compromise

Compromise is a conflict resolution strategy involving mutual concessions where all parties involved adjust their demands to reach an agreeable solution.

Brainstorming

A group creativity technique designed to generate a large number of ideas for the solution of a problem, allowing for rapid and free-flowing contributions.