Highlights
1. Identify the incremental cash flows for this project (ie produce a table of the incremental cashflows for capital budgeting analysis).
Use the supplied Excel spreadsheet for this task. Failure to do so will cost you marks
2. Write a brief executive summary to Kathy with your recommendation. Include a summary of your workings supporting your recommendation.
Make sure you look at the guide to writing assignments on how to do an executive summary. The executive summary must not be more than one page in length
3. The bookkeeper used the Accounting Rate of Return as an indicator of the merit of the move to the new facility. Is this decision criterion the one that should be used? Give reasons why you would use this criterion and one why you would not.
4. What others factors should Western Distributors consider?
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