The key steps followed by the managers in capital investment analysis include all of the following except
A)identification of capital investment needs.
B)preliminary screening.
C)formal requests for capital investments.
D)analyzing sunk costs.

Question

Quizplus · Accepted Answer

Analyzing sunk costs is not a key step in capital investment analysis. Sunk costs are costs that have already been incurred and cannot be recovered or changed, and thus do not affect future investment decisions. The other three choices are important steps in the capital investment analysis process.

The Key Steps Followed by the Managers in Capital Investment