Place the following investment decisions in order from the lowest risk to the highest risk
a. purchase of replacement machinery
b. new product in a foreign market
c. new product in the local market
d. repair of existing machinery

Question

Place the following investment decisions in order from the lowest risk to the highest risk 
a. purchase of replacement machinery
b. new product in a foreign market
c. new product in the local market
d. repair of existing machinery

Quizplus · Accepted Answer

Repairing existing machinery is typically the lowest risk as it involves maintaining current operations. Purchasing replacement machinery is slightly riskier but still involves existing operations. Introducing a new product in the local market carries more risk due to market acceptance uncertainties. Launching a new product in a foreign market is the highest risk due to additional factors like cultural differences and regulatory challenges.

Place the Following Investment Decisions in Order from the Lowest