Solution-Financial analysis overlook

Financial analysis overlook

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In an Law and Order episode, a car manufacturer knowingly built cars that had a significant safety flaw. Rather than redesigning the cars (at substantial additional cost), the manufacturer calculated the expected costs of future lawsuits and determined that it would be cheaper to sell an unsafe car and defend itself against lawsuits than to redesign the car. What issues does the financial analysis overlook?

Reference no: EM131115475

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Financial analysis overlook

Reference no: EM131115475

Reference no: EM131115475

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