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Capital Budgeting Process
Question Description
he attached article entitled, “Equipment Expenditures since 1995: The Boom and Bust,” addresses economic considerations related to investment by firms. Once you have read this article, answer the following questions:
1. Did the author’s research show that the recent decline in expenditures was related solely to reduction in technology expenditures?
2. What three factors does the author identify as driving investment by businesses?
3. How will the level of stock prices affect a firm’s investment?
4. Did the author conclude that the recent decline in stock prices was the driving force in investment?
/content/enforced/11964-000177-01-2142-GO2-9040/equipment expenditures.pdf
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