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Capital Investment Analysis
Genette Henderson was just promoted to supervisor of building maintenance for the Ford Valley Theater complex. All points Entertainment, Inc., Henderson’s employer, use a company-wide system for evaluating capital investment requests from its 22 supervisors. Henderson has approached you, the corporate controller, for advice on preparing her first proposal. She also likes to become familiar with the entire decision-making process.
1. What advice would you five Henderson before she prepares her first capital investment proposal?
2. Explain the role of capital investment analysis in the management process, including the six key steps taken during planning.
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