Asked by kenyana jones on Apr 25, 2024

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Which of the following is not considered a complicating factor in capital investment decisions?

A) income tax
B) lease versus purchasing options
C) equal proposal lives
D) qualitative factors

Capital Investment Decisions

Decisions made by businesses regarding large financial investments in projects or assets, considering future benefits and costs to maximize profitability.

Income Tax

A tax levied by the government directly on income, especially an annual tax on personal income.

Qualitative Factors

Non-numeric considerations that affect decision-making, planning, and management, such as employee satisfaction, brand reputation, and customer loyalty.

  • Recognize complicating factors in capital investment analysis including qualitative and quantitative considerations.
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Verified Answer

AN
Andrew NorcrossApr 26, 2024
Final Answer :
C
Explanation :
Equal proposal lives is not a complicating factor because it assumes that all proposals have the same lifespan, which simplifies the comparison process. However, factors such as income tax, lease versus purchasing options, and qualitative factors can all complicate capital investment decisions.