The controller at Ranyah Corporation analyzed a proposed equipment purchase for the firm and decided that the investment met all the firm’s criteria regarding payback, net present value, and internal rate of return. Notwithstanding the positive results, top management decided to reject purchase of the machine. Elaborate on why a firm might reject a project even though it satisfies all the capital budgeting analyses?

Answer rating: 100% (QA)

Some of the possible reasons for the refusal of a purchase of machine even after analyzing all the capital budgeting factors are as follows Loss of sa... View the full answer