Long-Term Capacity Decisions Are Important for Which of the Following

Multiple Choice

Long-term capacity decisions are important for which of the following reasons?
I.The impact they have on the ability to meet future demand.
II.The increased reliance on debt rather than equity financing to add long-term capacity.
III.As determinant of initial capital costs.
IV.Their effect on operating costs.

A) I and III only
B) I, II, and III only
C) II and IV only
D) I, III, and IV only
E) I, II, III, and IV