Question: As the CFO of your company it falls to you

As the CFO of your company, it falls to you to make the final decision on large expenditures. Recently, your controller has proposed purchasing a new computer system at a cost of $50,000.
He believes the system will deliver savings of $60,000 in the accounting department and could be useful to other departments as well. Your treasurer takes a decidedly different view of the proposal. She claims that the company will have to borrow money to buy the computer system, and this will cost $11,000 in interest. As well, she is concerned that the amount of savings promised by the controller won’t materialize. Should you purchase the computer system?

View Solution:

Sale on SolutionInn
  • CreatedFebruary 25, 2015
  • Files Included
Post your question