Match each one of the examples below with one of the stages of the capital budgeting decision model
Stages:
1. Identify Projects
2. Obtain Information
3. Make Predictions
4. Make Decisions by Choosing Among Alternatives
5. Implement the Decision, Evaluate Performance, and Learn
________ a. Issuing corporate stock for the funds to purchase new equipment
________ b. Learning how to effectively operate Machine #8 only takes 15 minutes
________ c. The need to reduce the costs to process the vegetables used in producing goulash
________ d. Monitoring the costs to operate a new machine
________ e. Percentage of defective merchandise considered too high
________ f. Will introducing the new product substantially upgrade our image as
a producer of quality products?
________ g. Estimating yearly cash flows and setting investment budgets accordingly using
a 12-year planning horizon.
________ h. Use of the internal rate of return for each alternative
________ i. Tracking realized cash flows and comparing against estimated numbers.
Answer:
a. 5. Implement the Decision, Evaluate Performance, and Learn
b. 2. Obtain Information
c. 1. Identify Projects
d. 5. Implement the Decision, Evaluate Performance, and Learn
e. 1. Identify Projects
f. 2. Obtain Information
g. 3. Make Predictions
h. 4. Make Decisions by Choosing Among Alternatives
i. 5. Implement the Decision, Evaluate Performance, and Learn
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