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Your company was bought by a large corporation and you are now one of seven plan

ID: 1173224 • Letter: Y

Question

Your company was bought by a large corporation and you are now one of seven plants vying for investment funds. You are preparing a financial analysis for the adoption of a complex proposal to submit to a corporate investment committee. Prior to being purchased, your plant just summed the estimated labor savings and divided investment by it. The corporate policy states that a 5-year present worth analysis of cash flow is needed for investment proposals, of which your plant manager knows nothing. There will be other competing proposals at the corporate level , and your plant manager's support and signature are needed. Write an explanation to the busy plant manager as to why the present worth approach should be used. This can be posted below or in a word document. Limit your answer to 500 words.

Explanation / Answer

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