appendix b
Financial Tools
for Evaluating Alternatives
Business decisions are often driven by financial concerns.
Should we continue operating our U.K. distribution center,
or should we outsource that activity to a supplier?
How long will it take to recoup our investments in alterna-
tives A and B?
Product A and product B are both attractive alternatives for
our company, but how many units must each of them sell be-
fore we start making money? Which represents the greatest
long-term value and rate of return for our company?
It appears that replacing the heating system in our Chicago
headquarters makes economic sense, given projected energy
costs. But what ...