Capital Budgeting

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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

 

Analyze the feasibility of acquiring a new supplier. In this analysis discuss the information
needed to analyze the decision, the process you will used to make the decision,
and  capital budgeting techniques used to
evaluate the decision.  You are to
conclude the analysis with selecting a capital budgeting technique to be used
in the evaluation.

MUST BE
IN THIS FORMAT

I. 
Introductory Paragraph

II. 
Discuss the Information Needed to Analyze the
Decision

III. 
The Process to be used to Make the Decision

IV. 
Capital Budgeting Techniques used to Evaluate
the Decision

V. 
Capital Budgeting Technique Selection

VI. 
Conclusion

VII. 
References

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