Question:
The CEO of a publicly held company has decided to move its facility to a new location 90 miles east of the present facility. The VP of finance has performed a cost-benefit analysis and determined that due to the high costs associated with the move, including building the new facility and high acquisition costs for land, that the move is not justifiable. The CEO, who lives near the proposed facility location, has asked the VP of Finance to provide an analysis justifying the move. How should the VP of finance approach this situation?