Suppose your friend serves as the CFO of XYZ Holdings, a mid-sized firm. The purchase department...

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Suppose your friend serves as the CFO of XYZ Holdings, a mid-sized firm. The purchase department of XYZ has submitted an equipment purchase requisition for CFO approval. Approval of the purchase request will result in additional cost, resulting in lower profitability in current year. However, investment in the equipment will add value to the firm in 3 to 4 years, i.e., in the long run when your friend may or may not serve as the CFO. What would by your suggestion for your friend? Suppose your friend serves as the CFO of XYZ Holdings, a mid-sized firm. The purchase department of XYZ has submitted an equipment purchase requisition for CFO approval. Approval of the purchase request will result in additional cost, resulting in lower profitability in current year. However, investment in the equipment will add value to the firm in 3 to 4 years, i.e., in the long run when your friend may or may not serve as the CFO. What would by your suggestion for your friend?

Answer rating: 100% (QA)

As a trusted advisor my recommendation to your friend serving as the CFO of XYZ Holdings would depend upon a few factors Long term strategy alignment ... View the full answer