Discussion Post: Capital Budgeting
Eddison Electric Company (EEC) provides electricity for several states in the United States. You have been employed as a cost accountant at this organization. The President of EEC recently called a meeting to announce that a firm has approached EEC about a possible acquisition. The President wants to consider this purchase and has requested that you and your staff analyze the feasibility of acquiring this supplier. Discuss the following:
1) Which costs would be utilized in making the decision to purchase the asset? Are future costs relevant in the decision-making process? Justify and support your position.
2) List and discuss the pros and/or cons associated with this potential acquisition.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.