Which of the following is true about installing modern equipment in a company?
A) Installing modern equipment can increase a company's overheads significantly.
B) A supervisor can install modern equipment only if the payback period of the equipment is relatively long.
C) A supervisor can install modern equipment only if the average rate of return of the equipment is low.
D) Installing modern equipment can be expensive if its benefits are less than its cost.

Question

Quizplus · Accepted Answer

Installing modern equipment can be expensive if its benefits are less than its cost. Companies need to carefully evaluate the cost-benefit analysis of investing in new equipment. If the benefits of the equipment do not outweigh the cost, it may not be worth the investment. Cost savings and increased efficiency are expected outcomes of installing modern equipment, but it's important to ensure that the benefits justify the cost of installation.

Which of the Following Is True About Installing Modern Equipment