All of the following statements about intangible benefits in capital budgeting are correct except that they
A) include increased quality and employee loyalty.
B) are difficult to quantify.
C) are often ignored in capital budgeting decisions.
D) cannot be incorporated into the NPV calculation.

Question

Quizplus · Accepted Answer

Intangible benefits such as increased quality and employee loyalty are often difficult to quantify and therefore may be ignored in capital budgeting decisions. However, they can still be incorporated into the NPV calculation using estimates or assumptions, so statement D is incorrect.

All of the Following Statements About Intangible Benefits in Capital