Question: Illinois Bio Technologies case How does depreciation affect the MCC schedule? If depreciation were simply ignored, would this affect the acceptability of proposed capital projects?

Illinois Bio Technologies case

How does depreciation affect the MCC schedule? If depreciation were simply ignored, would this affect the acceptability of proposed capital projects? Explain.

Should the corporate cost of capital as developed above be used by both divisions, and for all projects within each division? If not, what type of adjustment should be made?

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