11. Examining a Business Case: Investment

Business case analysis is one of the most important activities a finance department can undertake to support a company’s decision-making process. If the decision under consideration is a significant one—for example, bringing a new product on line, or discontinuing one that has reached the end of its life cycle—then a financial analysis of the resulting revenue, cost, and profit is necessary to make an informed decision.

A business case can take any of a variety of forms, depending on the question being considered and the decision that needs support. For example, a basic sort of question concerning the use of capital is, ...

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