The world’s Largest Sharp Brain Virtual Experts Marketplace Just a click Away
Levels Tought:
University
| Teaching Since: | Apr 2017 |
| Last Sign in: | 438 Weeks Ago, 1 Day Ago |
| Questions Answered: | 9562 |
| Tutorials Posted: | 9559 |
bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
 You are a financial analyst for the Ajax Company, which uses about $1 million of inventory per month. The purchasing manager has come to you for help with a buying decision. He can get a big discount on $15 million of inventory by buying it all at once. However, there is some risk of obsolescence when buying that far in advance. He understands that large purchases are frequently analyzed by means of capital budgeting techniques, and he asks for your help in deciding whether to buy the specially priced inventory. How would you advise him? Is capital budget- ing appropriate?
Â
Cap-----------ita-----------l b-----------udg-----------eti-----------ng -----------pro-----------ble-----------ms -----------gen-----------era-----------lly----------- do-----------es -----------not----------- in-----------clu-----------de -----------inv-----------ent-----------ory----------- is-----------sue-----------s a-----------s t-----------hey----------- ar-----------e n-----------ot -----------lon-----------ger----------- pe-----------rio-----------d d-----------eci-----------sio-----------ns.----------- In----------- th-----------e g-----------ive-----------n c-----------ase-----------, c-----------api-----------tal----------- bu-----------dge-----------tin-----------g m-----------ay