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You are analysing a number of capital budgeting decisions design to reduce labor costs or increase output ofyour products. How each ofthe events affect

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You are analysing a number of capital budgeting decisions design to reduce labor costs or increase output ofyour products. How each ofthe events affect the evaluation? That is: '.vl it make more attractive, less attractive or have no effect? Consider each event independently. Justify your answer. Your company signs a new contract, with its union calling for a significant mcrease m salary rates? Your chief competitor announces that: it ',vdl decrease the selling price of its products. The entry of new product '.vdl slow the sales-growth rate of one of your major products.

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