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What will be the decision-making process

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Reference no: EM132447847 , Length: word count :- 800

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  • The President of EEC recently called a meeting to announce that one of the firm's largest suppliers of component parts has approached EEC about a possible purchase of the supplier. The President has requested that you and your staff analyze the feasibility of acquiring this supplier.

Discuss the following:

  1. What information is needed to analyze this investment opportunity?
  2. What will be your decision-making process?
  3. All future costs are relevant in decision making. Do you agree? Why?
  4. Capital budgeting decisions fall into 2 broad categories: screening decisions and preference decisions. Discuss this.
  5. Which do you think EEC should use-screening decisions or preference decisions? Why?

Reference no: EM132447847

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