ASH BUS 650 Week 5 DQ 1 .pdf
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BUS 650 Week 5 DQ 1 Factors in Capital
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Imagine you are a representative of management in the company you
have selected for your Week Six assignment and you must make a capital
budgeting decision. The decision is to implement a new computer
network system to decrease the time between customer order and
delivery. The cost will be 10% of last year’s profits. You are charged with
describing the important considerations in the decision-making process
to upper management. In your response, be sure to include the
A description of the important factors, in addition to quantitative
factors, that were considered when making this capital budgeting
An explanation of how these factors are significant to the company.
A summary of how you will determine the criteria to rank capital
budgeting decisions and whether some criteria are more important than
A calculation of the proposed return on investment based on criteria you
select and justification for that ROI.
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