Ranking of Capital Projects: Preferred Method
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What is the preferred method of ranking different capital projects? Why is it preferred?
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Solution Summary
Solution clearly explains the different methods of ranking capital projects and the preferred among all the methods.
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As capital projects require huge investment and it is not possible to revert the decision once taken, because the consequences are severe, for example you can not say no to a construction in its middle stage or you can not say to supplier of machinery to get it back once they have been shipped, therefore the capital projects should be executed after thorough evaluation. There are four basic methods are available, they are ...
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