Discuss the implication on earnings and cash flow

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Memorandum: Project Selection Decisions

The meeting with the analyst went well. However, you want to crunch the numbers yourself to ensure accuracy. Furthermore, you need to consider the project in the broader context of how the new production facility can help the company increase output and, more importantly, profits. You know that the CFO will ask you to analyze the project at different hurdle rates, determine the implication on earnings and cash flow, and articulate why this project was chosen over the multitude of options that exists.

Articulate how companies make project selection decisions.

 

Reference no: EM1334730

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