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| Topic: |
Business
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| Number of pages / Number of words: |
14 / 3700 |
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Thus, buying a Lathe for the machine shop and computerizing administration are independent investments. If the cash flows from one investment are affected by the decision to undertake another investment, they are said to be dependent. Dependence can be of four types. If the decision to undertake the second investment increases the benefit expected from the first (or decrease cost), then the second investment is said to be a complement of the first...
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Dependence can be of four types. If the decision to undertake the second investment increases the benefit expected from the first (or decrease cost), then the second investment is said to be a complement of the first. Ex: Providing entertainment to visitors in a large clothing shop or manufacturing a primary input if it leads to cost advantage...
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