1. Do you think a company's decision to use a positive NPV should be based on the economic profitability and the acceptance by the firm's culture? Why or why not? Remember, the culture may be different in a global situation. (100 words)
2. What is marginal cost?
3. What are cost allocation models?
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1. A firm's decision to use positive NPV is based on a firm's acceptance of NPV as a capital budgeting tool. While a positive NPV implies that the project is creating wealth for the firm, there are other intangible benefits that are strategic and difficult to quantify in monetary terms. One such benefit is enabling an organization to function more effectively, or reinforcing or recreating a corporate culture. NPV values for culture practices, if positive indicate that these culture practices are viable in the ...
The expert examines global business management decisions.