Question
Assume it is now July 2020 and Brenda, who has become more confident at planning ahead for the business. She has established that for an
Assume it is now July 2020 and Brenda, who has become more confident at planning ahead for the business. She has established that for an extra investment of RM100,000, she could buy an upgraded equipment which is more flexible than the originally planned equipment purchases. The updated equipment can be used to produce cog mechanisms of a slightly different design, in addition to the current cog mechanism. These slightly different cog mechanisms are suitable for use in automated waste collection vehicles, a new market for the company. The additional investment in the upgraded equipment enables the company to increase its production capacity to the extent of having a spare capacity of 35%, this enable Endeavour Limited to enter into the new market.
Discuss the types of information which Brenda would need to consider in making a decision to purchase the upgraded equipment, the likely sources of information and any other factors which you feel she should consider
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