Because of the expense of applying multiple techniques,managers should use a single capital budgeting technique to analyze potential capital investments.

Question

Quizplus · Accepted Answer

Managers should not rely on a single capital budgeting technique to make investment decisions as it may not provide a complete picture of the investment's potential. Instead, managers should use multiple techniques to analyze potential capital investments and consider their strengths and weaknesses before making a decision. While using multiple techniques may increase costs, it also helps managers make more informed investment decisions and avoid potential losses.

Because of the Expense of Applying Multiple Techniques,managers Should Use