Justification of investments in advanced manufacturing systems by using discounted cash flow analysis results in rejection of the proposal because the present value of future cash flows are negative.What is/are possible reason(s)for adopting the proposal,anyway?

Question

Quizplus · Accepted Answer

The reasons for adopting the proposal despite negative present value of future cash flows include injecting new technology into the company's operations (A), the long-term benefits of improved quality, greater flexibility, and lower inventories (B), and the consideration of intangible benefits in addition to quantifiable benefits (C). These factors can contribute to the long-term success and competitiveness of the company, justifying the investment.

Justification of Investments in Advanced Manufacturing Systems by Using Discounted