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Determine the period of evaluation. Determine the alternatives available for evaluation. Prepare the relevant cost analysis based on future differential cash flows for each alternative,

  1. Determine the period of evaluation.
  2. Determine the alternatives available for evaluation.
  3. Prepare the relevant cost analysis based on future differential cash flows for each alternative, and identify the least cost alternative.
  4. Assuming no additional information is available, from a purely financial perspective, should Sameer accept FPP's proposal and close down the P&D Department for one year?
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5 of 5 A00001 EXHIBIT I: COST STATEMENT FOR THE YEAR 2013* (in INR) Publishing Printing and Distribution Department Department 340,000 288,000 170,000 340,000 1 15,000 150,000 85,000 Cost Particulars Salary & Wages Material & Supplies Depreciation Allocated General Overheads Warehouse Rent 42,000 Other Operating Expenses 96,000 79,000 Total Expenses 848,000 1,020,000 *Summary of the cost statement of the Publishing Department and the Printing and Distribution Department for the year ending December 2013. 48,000 I- l- E I. Source: Case writers

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