Question

Some nonfinancial factors included in capital investment decisions are more important now than they were 20-25 years ago. Give some examples of the types of nonfinancial factors that managers would consider more important in today's capital investment decisions than they were in the past.

Answer 1

Answer:

The non-financial factors that are currently viewed as more vital than they were considered in the past in capital venture choices are as per the following:

Notoriety of the firm: Reputation of the firm has now turned out to be integral to capital venture choices now. Capital speculations that could improve the company's notoriety are favored over different ventures.

Ecological issues: The effect of the capital speculation on nature is another vital non-money related factor that is considered while choosing a capital venture. A domain agreeable venture is favored over others.

Example:

Example of non-financial factors that chiefs consider more critical in the present capital venture choices than they were in the past incorporate choice identified with notoriety of the firm. on the off chance that the capital speculation choice in a task upgrades the notoriety of the firm it is favored over different activities.

Another sort of non-financial factors considered by directors are the effect of the choice on the earth.

Condition benevolent task are favored over different activities. Choices identified with assurance of representatives and social obligation are other non-financial factors for capital venture choices.