What should a firm do to justify or reject investments in advanced manufacturing systems?

Question

Quizplus · Accepted Answer

A firm should consider both quantifiable and nonquantifiable benefits while justifying or rejecting investments in advanced manufacturing systems. Using only discounted cash flow analysis, perfect estimates of tangible costs and benefits or establishing a high discount or cut-off rate may not capture all the potential benefits and hence, might not provide an accurate justification. Making a judgment that considers both quantifiable and nonquantifiable benefits would provide a holistic view of the investment decision.

What Should a Firm Do to Justify or Reject Investments