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A ( initial capital ) revamping project is currently underway for the receiving dock of a hardware wholesaler. The completed project is expected to provide
A initial capital revamping project is currently underway for the receiving dock of a hardware wholesaler. The completed project is expected to provide future benefits for which the wholesaler would have been willing to pay up to $x if necessary. However, new information has been received that the entire facility will be shut down when its lease expires, leading to a new estimate that the future benefits of the revamp are worth only $y If the revamping project is curtailed quickly, the wholesaler can save the last $z of its cost. Should this be done?A initial capital revamping project is currently underway for the receiving dock of a hardware wholesaler. The completed project is expected to provide future benefits for which the wholesaler would have been willing to pay up to $x if necessary. However, new information has been received that the entire facility will be shut down when its lease expires, leading to a new estimate that the future benefits of the revamp are worth only $y If the revamping project is curtailed quickly, the wholesaler can save the last $z of its cost. Should this be done?
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