Please respond to the following:
Analyze the pros and cons of identifying the potential intangible benefits of investment proposals. What is the outcome if management fails to consider the intangible benefits of a capital budgeting decision?
Be sure to respond to your classmate’s (Kristen) post below:
Analyze the pros and cons of identifying the potential intangible benefits of investment proposals. The pros of identifying the potential intangible benefits of investment proposals include safety improvement, increase in product quality, and improved employee loyalty. The cons would be the fact that intangible benefits are complex and can be difficult to input. This could cause a delay in any proceedings.
What is the outcome if management fails to consider the intangible benefits of a capital budgeting decision? If management fails to consider intangible benefits of a capital budgeting decision this could result in the rejection of projects that would have financially benefited the company.