This article shows clearly that some capital investment projects involve very large sums of money and that the decision-making involved can be extremely complex.
1 How do you think Sage had managed to built up its ‘war chest’ of £500m?
2 Why do you think that Sage thought that this acquisition was justified?
3 What comments would you make about the payback time for the acquisition of Verus?
4 What does it tell you about Sage’s investment strategy?