When making investment decisions that involve advanced manufacturing systems, the use of net present value:
A. often gives rise to net-present-value figures that are negative despite a manager's belief that the investment is beneficial for the firm and often omits a number of factors that are difficult to quantify (e.g., greater manufacturing flexibility, improved product quality, and so forth).
B. presents no special problems for the analyst.
C. often omits a number of factors that are difficult to quantify (e.g., greater manufacturing flexibility, improved product quality, and so forth).
D. often gives rise to net-present-value figures that are negative despite a manager's belief that the investment is beneficial for the firm.
E. should be coupled with Pareto diagrams.
Answer: A
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Cloyd's Supermarket, a popular retail store, sells a variety of products. In order to know if they should improve their services, they send out questionnaires to their frequent customers
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c. January: 0.87, February: 1.08, March: 0.92
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