Managerial Economics - Assignment Example

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Implication by the various department desires to use different discount rate is that for the concerned stakeholders to know which of the project is viable through the use of appraisal methods such as ARR, IRR and NPV. For instance given that the borrowing rate of Government is…

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Subject: Management
Type: Assignment
Level: College
Pages: 3 (750 words)
Downloads: 2
Author: bkrajcik

Extract of sample "Managerial Economics"

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Capital expenditure refers to expenditure incurred by an organization with an aim of improving future benefits of the company. It is incurred when an organization buys fixed assets or adding value to the existing fixed assets hence extending its useful life. c) Diversification of assets, fixed assets can be used for various purposes in the company for instance in production of goods and services, these assets also help in reducing cost since they produce large quantities of goods. Failure to implement the capital expenditure, the organization will be unable to diversify the assets (Daniels,

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