Hunter Corporation will evaluate a potential investment in an advanced manufacturing system by use of the net-present-value (NPV) method. Which of the following system benefits is least likely to be omitted from the NPV analysis?

Question

Quizplus · Accepted Answer

Savings in operating costs are a direct financial benefit and are typically included in NPV analysis, as they can be quantified and directly impact cash flows. Other benefits like flexibility, quality, cycle time, and order fulfillment are often qualitative and harder to quantify, making them more likely to be omitted.

Hunter Corporation Will Evaluate a Potential Investment in an Advanced