Problem
Your company is in need of business expansion as there is a lot of competition in the market. The CEO proposed to purchase heavy machinery needed for business expansion. Your CEO has asked you to examine the company's financial position and present a report on whether or not you should purchase that heavy machinery. The following are the tasks to be included in the report you will submit.
1. To identify historical background of your company
2. To analyze the decision whether or not to purchase machinery by using capital budgeting tools.
3. To clarify the advantages and disadvantages of these capital budgeting tools
4. To calculate and evaluate the consequences that will occur after purchasing the machinery.