Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

You have been made treasurer for a day at AIMCO, Inc. AIMCO develops technology for video conferencing. A manager of the satellite division has asked you to authorize a capital expenditure in the amount of $10,000. The manager states that this expenditure is necessary to continue a long-running project designed to use satellites to allow video conferencing anywhere on the planet. The manager admits that the satellite concept has been surpassed by recent technological advances in telephony, but he feels that AIMCO should continue the project. His reasoning is based on the fact that $2.5 million has already been spent over the past 15 years on this project. Although the project has little change to be viable, the manager believes it would be a shame to waste the money and time already spent. Use marginal cost-benefit analysis to make your decision regarding whether you should authorize the $10,000 expenditure to continue the project.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M946239

Have any Question? 


Related Questions in Basic Finance

Assignment financial managementdirections be sure to save

ASSIGNMENT: Financial Management Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to u ...

Questionhypothesis testing scenariocaptionnbspas you

Question: Hypothesis Testing Scenario Caption:  As you prepared your memo about the new "Tire Kit" line, you discovered that the sample size that you were provided was insufficiently small. Using a larger sample of 200 c ...

Utilize a graphic organizer or chart of your own in this

Utilize a graphic organizer or chart of your own in this discussion to compare and contrast "Felt Needs," Ascribed Needs," and "Future Needs". You can be creative in the selection of your diagram or chart. Post your diag ...

Suppose the economy is in short-run equilibrium at a level

Suppose the economy is in short-run equilibrium at a level of output that exceeds potential output. How would the economy self-adjust to return to long-run equilibrium?

Assignment1 describe the role that the winners curse may

Assignment 1. Describe the role that the "winner's curse" may play in the underpricing of IPOs. 2. a. Does a rights offer cause a share price decrease? Why or why not? b. How are existing shareholders affected by a right ...

The assignment this week will be the second short paper on

The assignment this week will be the second short paper on Return on investment with a focus on the steps recommended for building the documentation for the justification of a "soft return" (Soft costs include risk avoid ...

In the first half of 1997 the bank of thailand maintained a

In the first half of 1997, the Bank of Thailand maintained a fixed exchange rate of 26 Thai baht to the U.S. dollar, but Thai interest rates were substantially higher than those in the United States and Japan. Thai banke ...

Explain how buying behavior of business customers in

Explain how buying behavior of business customers in different countries may have been a factor in speeding the spread of international marketing.

A firm has common stock of 80 paid-in surplus of 160 total

A firm has common stock of 80, paid-in surplus of 160, total liabilities of 350, current assets of 420, and fixed assets of 630. What is the amount of the shareholders' equity?

The fed and long-term treasury securities why did the fed

The Fed and Long-term Treasury Securities : Why did the Fed purchase long-term Treasury securities in 2010, and how did this strategy differ from the Fed's usual operations?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate