Question: In your own words, please fully answer the question and make substantive responses to at least 400 words that dive into the topic andshow that

In your own words, please fully answer the question and make substantive responses to at least 400 words that dive into the topic andshow that you havedone research to support your opinions.

Apply appropriate examples that illustrate your points; feel free to bring your workplace experiences.

Please make sure that your explanation contains a properly cited reference.Please use APA style and in-text citations.

The following are some selected quotes from senior executives:

CEO,Worthington Industries(a high-technology steel company): "We try to find the best technology, stay ahead of the competition, and serve the customer. ... We'll make any investment that will pay back quickly ... but if it is something that we really see as a must down the road, payback is not going to be that important."

Chairman ofAmgen Inc.(a biotech company): "You cannot really run the numbers, do net present value calculations, because the uncertainties are really gigantic. ... You decide on a project you want to run, and then you run the numbers [as a reality check on your assumptions]. Success in a business like this is much more dependent on tracking rather than on predicting, much more dependent on seeing results over time, tracking and adjusting and readjusting, much more dynamic, much more flexible."

Chief financial officer ofMerck & Co., Inc.(a pharmaceutical company): "... at the individual product levelthe development of a successful new product requires on the order of $230 million in R&D, spread over more than a decadediscounted cash flow style analysis does not become a factor until development is near the point of manufacturing scale-up effort. Before that point, given the uncertainties associated with new product development, it would be lunacy in our business to decide that we know exactly what's going to happen to a product once it gets out.

Required:

Please explain the role of capital investment analysis for these companies.
Please provide the advantages of leasing a fixed asset rather than purchasing it, using two examples.

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