Which of the following statements best describes the role of qualitative factors,such as company image,in the selection of projects?
A)They are ignored because they are subjective.
B)They are useful to decision-makers but management is unable to quantify them.
C)They must be quantified in some manner before they can be of some use.
D)They are only to be used when deciding between projects with identical net present values.

Question

Quizplus · Accepted Answer

Qualitative factors, such as company image, can be useful to decision-makers in the selection of projects, but they are difficult to quantify with numerical values. Therefore, management may use their judgment and experience to consider these factors in the decision-making process alongside quantitative factors, such as net present value. While these factors may not be as concrete as financial data, they can still play a significant role in the overall success of a project.

Which of the Following Statements Best Describes the Role of Qualitative