U3 DB

Type: Discussion Board

Unit:  Decision Making and Capital Budgeting

Due Date:  Wed, 6/6/18

Deliverable Length:  750-1,000 words

View objectives for this assignment

https://class.ctuonline.edu/_layouts/MUSEViewer/MUSE.aspx?mid=11105750

Primary Discussion Response is due by Friday (11:59:59pm Central), Peer Responses are due by Tuesday (11:59:59pm Central).

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:

• What information is needed to analyze this investment opportunity?
• What will be your decision-making process?
• All future costs are relevant in decision making. Do you agree? Why?
• Capital budgeting decisions fall into 2 broad categories: screening decisions and preference decisions. Discuss this.
• Which do you think EEC should use—screening decisions or preference decisions? Why?

In your own words, please post a response to the Discussion Board and comment on other postings. You will be graded on the quality of your postings.