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Our Lakewood facility would benefit from an additional unit (NPV=$10,000). We could buy the new unit for $6,000 or relocate a unit from another facility
Our Lakewood facility would benefit from an additional unit (NPV=$10,000). We could buy the new unit for $6,000 or relocate a unit from another facility for $5,000. You decide to relocate a unit. While it is in transit an accident results in the destruction of the unit. There was no insurance on the unit or the transit. The accountant tells you that if you now buy the additional unity, then $11,000 will all be allocated to the project causing it to show a loss. What do you do?
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