Homework: Capital Budgeting
The President of EEC recently called a meeting to announce that one of the firm's largest suppliers of component parts has approached EEC about a possible purchase of the supplier. The President has requested that you and your staff analyze the feasibility of acquiring this supplier. Discuss the following:
a) What information is needed to analyze this investment opportunity?
b) What will be your decision-making process?
c) All future costs are relevant in decision making. Do you agree? Why?
d) Capital budgeting decisions fall into 2 broad categories: screening decisions and preference decisions. Discuss this.
e) Which do you think EEC should use-screening decisions or preference decisions? Why?
Format your homework according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.