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  • Exam Name: SAP Certified Application Associate - SAP SuccessFactors Recruiting: Candidate Experience 1H/2021

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Adams Audio is considering whether to make an investment in a new type of technology. Which of the following factors should the company consider when it decides whether to undertake the investment?
A. The new technology will affect the cash flows produced by its other operations.
B. None of these factors should be considered.
C. If the investment is not made, then the company will be able to sell one of its laboratories for $2 million.
D. All of these factors should be considered.
E. The installation costs for the new equipment for the new technology are very high.
Answer: D
These are all incremental cash flows which change the firm's total cash flow that occurs as a direct result of accepting the project, and should all be considered


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