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Capital Investment Decisions

Which one of the following is not a reason why a company should carefully plan its capital investment decisions?
a. Capital investments usually require a large initial outlay of capital.
b. Capital investments are usually tied to management bonus plans.
c. Capital investment decisions affect earnings over a long period of time.
d. Capital investments are less liquid, so poor investment decisions are difficult to reverse.

Solution Preview

Which one of the following is not a reason why a company should carefully plan its capital investment decisions?
a. Capital investments usually require a large initial outlay of capital.
b. Capital ...

Solution Summary

Answers a multiple choice question on capital investment decisions.

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