Acquisition explained in this answer

The President of EEC recently called a meeting to announce that one of the firm's largest suppliers of component parts has approached EEC about a possible purchase of the supplier. The President has requested that you and your staff analyze the feasibility of acquiring this supplier. What information will you and your staff need to analyze this investment opportunity? How will you go about making the decision? Discuss and evaluate the different techniques that could be used in capital budgeting decisions. Which do you think EEC should use? Why?

Solution Summary

The President of EEC recently called a meeting to announce that one of the firm's largest suppliers of component parts has approached EEC about a possible purchase of the supplier.