How can capital budgeting tools assist in evaluating a manager who is responsible for retaining customers of a cellular telephone company? Explain in depth, please.© BrainMass Inc. brainmass.com June 4, 2020, 5:22 am ad1c9bdddf
How can capital budgeting tools assist in evaluating a manager who is responsible for retaining customers of a cellular telephone company? Explain in depth, please.
1. Let's begin with a discussion of what capital budgeting tools entails: A manager, specifically a financial manager, has the responsibility to select investments that create positive cash flows and positive rates of return on the organization's investments (What is capital budgeting?, n.d.)
In the case of a manager responsible for retaining cellular customers, the job of the manager is to make sure that the customers in question are satisfied with their service, that these customers continue making payments as agreed, and that at every opportunity the manager ensures customer service agents are making the appropriate up-sell attempts to increase revenues and cash flows.
As an example, a customer making payment of $100.00 per ...
This response provides the student with information directly relating to the evaluation of a manager's financial management of customer accounts. Some in-depth definitions of capital budgeting tools are provided, and guidance is provided to the student on applying the related financial principles to the evaluation of the manager. Some brief guidance is provided on the principle of the time value of money.