Would you expect the unit manager to take the project

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Reference no: EM132814450

Question - The Internal Control Systems unit manager has just been approached by a long-time client for an urgent project. The client is willing to pay $600K if the project is completed before the end of 2019. Otherwise, the project can be deferred to next year, in which case the client is willing to pay $450K. The unit manager estimates the project would be accretive to EBITDA by $300K (in 2019) if the project is undertaken this year, and by $180K (in 2020) if the project is undertaken next year. Would you expect the unit manager to take the project in 2019 or defer it to 2020? What decision would Fisher prefer?

Reference no: EM132814450

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