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You are Vice President of Acquisitions for Greensill Capital, LLC.Your chief executive officer asks you to evaluate a possible acquisition of a company known as

You are Vice President of Acquisitions for Greensill Capital, LLC.Your chief executive officer asks you to evaluate a possible acquisition of a company known as Mayor Oscar's Meat Sellers, Inc.("MOMS").In performing due diligence on MOMS you learn the following:

A.You also learn that MOMS' manufacturing plant has been operating at fifty percent capacity because one of the pork processing machines has failed and needs to be replaced.This manufacturing machine was purchased over five years ago; the cost of repairing the machine is estimated to be $3,000,000.MOMS' General Counsel tells you "the good news is that when the machine broke down it didn't damage any other machinery or harm anyone."She expects that MOMS will be able to recoup most or all of the replacement costs and lost profits by bringing a claim for negligence and strict product liability against the manufacturer of the pork processing machine.

a brief memo to your CEO addressing the issues set forth above.

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