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VP of Finance Preforming a Cost-Benefit Analysis

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The CEO of a publicly held company has decided to move its facility to a new location 90 miles east of the present facility. The VP of finance has performed a cost-benefit analysis and determined that due to the high costs associated with the move, including building the new facility and high acquisition costs for land, that the move is not justifiable. The CEO, who lives near the proposed facility location, has asked the VP of Finance to provide an analysis justifying the move. How should the VP of finance approach this situation?

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Solution Summary

The CEO of a publicly held company has decided to move its facility to a new location 90 miles east of the present facility.

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The VP of finance should not justify the move by presenting a misleading and false analysis to Top managmeent, shareholders and other stakeholders of the firm. This will be highly unethical in the sense that it is ...

Solution provided by:
Sandeep Bardia, MBA
Education
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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