Question

PLEASE USE SOMETHING THAT HAS NOT BEEN USED BEFORE

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 should use—screening decisions or preference decisions? Why?

PLEASE USE DETAIL

Answer 1

while making an investment investors use to analize froncial statement of the proposed Company to assess the risk and rehim of thier investment. The investors will also look the Gredit informations like the credit rating of the company marleet trends i equity research report, traale and Cash flow Statement of the company. . Jovestment Investment analysis is the process of evaluating the investment for profitability and risk it ultimatly has the purpose of measuring how the given investment is good fit for proofolio. It innolues rescerching and evaluating sevarities to determine their future porformance and their suitability given and an investore the needs goals Yes all future losts are relement in decesion making because to get a better picture or to calculate the return on investment all future Costs will be taken is to account cs Scarlopitalin budgeting dression is a process where a and risk tolerence to Camscanner

Compony plans and determines any longterm Capital expenditure whoes returns in terms of Cashflow are enopected to receine beyond a year. Two broad lahogeries of capital budgeting decisions are Screening decesion ingu and preference decesions, Screening decesioni relaled to whether a proposed project Salisty sahistie's some current aceptance Standards - Preference de ceribus apply to Selecting from completing course of action . The Preference Capital budgeting decesion will be Usefill because if compores several alternative Projects and that have met their screening for criteria wheather ä maximum rate of return or some other measure of usefulness and rank them in the order of desirability. Scanned with CamScanner