25.3 - Types of Capital Investment Projects
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Practice Questions
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What are expansion projects primarily focused on?
💡 Hint: Think about growth strategies.
Why would a company initiate a replacement project?
💡 Hint: Consider efficiency improvements.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What primarily defines expansion projects?
💡 Hint: Think about what companies do to grow.
True or False: Replacement projects are only about replacing outdated machinery.
💡 Hint: Consider the broader implications of asset replacement.
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Challenge Problems
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A company has to decide between investing in a new product line (expansion) or upgrading its existing technology (replacement). Discuss the factors influencing this decision.
💡 Hint: Consider financial and market analyses.
Evaluate the long-term benefits of investing in advanced technology versus keeping outdated equipment for a manufacturing firm.
💡 Hint: Think about both direct and indirect costs and benefits.
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