Analyze the feasibility of acquiring eec supplier

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Reference no: EM132451301 , Length: word count: 1000

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:

Question 1: What information is needed to analyze this investment opportunity?

Question 2: What will be your decision-making process?

Question 3: All future costs are relevant in decision making. Do you agree? Why?

Question 4: Capital budgeting decisions fall into 2 broad categories: screening decisions and preference decisions. Discuss this.

Question 5: Which do you think EEC should use-screening decisions or preference decisions? Why?

Reference no: EM132451301

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