If a capital investment proposal meets the net present value

If a capital investment proposal meets the net present value and internal rate of return standard, what does management analyze next?

Solution

If a proposal meets the Net present value and internal rate of return consideration ,then the management should then consider the qualitative factors such as Improved efficiency ,Reduce cost ,Improvement in employee morale etc

If all qualitative factors that organisation is considering comes out to be favorable ,organisation will undertake the investment proposal otherwise reject it .