Stages of product life cycle aide in decision making process

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Reference no: EM13814700

A company invests in capital assets for a variety of reasons. Typically obsolescence, need for additional capacity and stages of a product life cycle aide in the decision making process for capital purchases. If a company has surplus cash or assets they also have the option of distributing the excess to the shareholders in the form of dividends.

Please describe the rationale for a company to either distribute excess or invest in capital assets. Please discuss the product life cycle and desire for growth. Compare the expectations of the shareholders with that of management as it relates to capital acquisitions. You must cite 1 source.

Reference no: EM13814700

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