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Match Each One of the Examples Below with One of the Stages

Question 151

Matching

Match each one of the examples below with one of the stages of the capital budgeting decision model.

Premises:
Issuing corporate stock for the funds to purchase new equipment
Learning how to effectively operate Machine #8 only takes 15 minutes
The need to reduce the costs to process the vegetables used in producing goulash
Monitoring the costs to operate a new machine
Percentage of defective merchandise considered too high
Will introducing the new product substantially upgrade our image as a producer of quality products?
Estimating yearly cash flows and setting investment budgets accordingly using a 12-year planning horizon.
Use of the internal rate of return for each alternative
Tracking realized cash flows and comparing against estimated numbers.
Responses:
Identify Projects
Obtain Information
Make Predictions
Make Decisions by Choosing Among Alternatives
Implement the Decision, Evaluate Performance, and Learn

Correct Answer:

Issuing corporate stock for the funds to purchase new equipment
Learning how to effectively operate Machine #8 only takes 15 minutes
The need to reduce the costs to process the vegetables used in producing goulash
Monitoring the costs to operate a new machine
Percentage of defective merchandise considered too high
Will introducing the new product substantially upgrade our image as a producer of quality products?
Estimating yearly cash flows and setting investment budgets accordingly using a 12-year planning horizon.
Use of the internal rate of return for each alternative
Tracking realized cash flows and comparing against estimated numbers.
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