In addition to that, they have tested the major reason that is cited to explain why the financial appraisal often fails to justify investment in Advanced Manufacturing Technology (AMT). It is because those benefits which are difficult to quantify are either understated or frequently omitted from the financial appraisal. As a result of that, UK organizations may be failing to achieve profitable investment.
On the other hand, when we are considering the appraisal of AMT project, different researchers have established diverse arguments. Kaplan (1986) argued that conventional DCF method should be used based on the financial data available to appraise the AMT projects. Meredith & Suresh (1986) also developed the new approach consisting of flexibility, high level of risk and the synergy of Flexible Manufacturing Systems (FMS) when linked together with other systems. These three levels were tested on different appraisal techniques and try to overcome the problems associated with Kaplan’s Model. But later, Browmich & Bhimami (1991) developed the model which quantifies all the benefits either in financial terms or score value terms. Choosing the Appropriate Method of Capital Investment Evaluation Process.
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