Question: Would your answer be the same if EEC's cost of capital were 25%? Why or why not? Would your answer be the same if EEC

  • Would your answer be the same if EEC's cost of capital were 25%? Why or why not?
  • Would your answer be the same if EEC did not save $500,000 per year as anticipated?
  • What would be the least amount of savings that would make this investment attractive to EEC?
  • Based on your calculations, should EEC acquire the supplier? Why or why not?

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