Capital investment analysis

Assignment Help Accounting Basics

Reference no: EM13120743

Parsing Electronics is interested in expanding its operations with a new manufacturing facility in Slovakia. The company prepares a capital investment analysis on the validity of the project and finds that the project is viable. The company expects to have a positive net present value on the facility.

As the accountant for the company, you begin to work with legal and other departments to enter into the purchase of land and other contracts in Slovakia. During your investigations, you find that there are several large manufacturers who have backed out of investing in Slovakia over the last year. This concerns you.

After compiling more information, you meet with the head of the project Gustav Franken about this issue. Franken is not concerned stating that Slovakia is a stable new republic with an interest in attracting foreign investment. Later, you find out that Franken's wife family is involved in the government of the country as well as are the owners of the land being purchased.

Required:

• Do you bring your concerns back to Franken? Or do you approach his superior on the project?

• Do you remain silent since you have no responsibility in the project?

Reference no: EM13120743

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