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Examining a Business Case: Investment
Business case analysis is one of the most important activities a finance department can undertake in support of a company’s decision-making process. A significant decision—for example, bringing a new product on line, or discontinuing one that has reached the end of its life cycle—requires reliable information, such as a financial analysis of the resulting revenue, cost, and profit.
A business case can take any of various forms, depending on the question you’re considering and the decision that you need to support. For example, a basic question concerning the use of capital is, “Should we lease a copy machine or buy one?” Although the ...
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