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Can a manager be demotivated if all capital expenditure request must be support by detailed proposal including net present Value calculation that I submitted to head office?
Yes. Some capital expenditure is for small amounts, like a new laser printer. It would be very demotivating to have to produce a detailed proposal for that.
Usually, capital expenditure authorisations are geared to the amount of expenditure so that only expenditure over a certain amount has to be accompanied by a detailed proposal and NPV calculations.
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