Buy custom Black Thursday - Capital Spending Risks MBA540
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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1337 |
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Ross (et al, 2005) suggests four rules: "the payback rule, the accounting-rate-of-return rule, the internal rate of return (IRR), and the profitability index" (p. 59). Although these financial calculations all have merit, there are drawbacks to using the rules in some situations. When making decisions about small investments the payback method is easiest to calculate, such as extending the life of a machine by adding routine maintenance or small parts replacement...
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59). Although these financial calculations all have merit, there are drawbacks to using the rules in some situations. When making decisions about small investments the payback method is easiest to calculate, such as extending the life of a machine by adding routine maintenance or small parts replacement...
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Black Thursday - Capital Spending Risks MBA540
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