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Davis Humanics Case Summary

Satisfactory Essays

The memorandum will states the disadvantages and limitations that the Davis Humanics Corporation needs to consider if they want to use the Return on investment (ROI). While the use of ROI can benefits DH the weakness of the method is that DH need to realize that the totals they come up with will not be included in cost and returns that will equal their forecast. If ROI are not understood then those investing could have an outcome they were not expecting. As DH views their choices opportunity, make sure to assess the likelihood cash flows will match predictions, measure the investment's strengths, and include a qualitative analysis of any intangible benefits and costs in addition to any return on investment analysis. Disadvantages can also

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