- 3 Marks
MA – Nov 2021 – L2 – Q4b – Discounted Cash Flow
Discuss non-financial factors that Bee Ltd should consider before outsourcing production.
Question
b) Bee Ltd could outsource the production of Ohenewa to an overseas manufacturer. The Accountant has presented figures to show that the NPV of the project based on outsourcing the production is GH¢0.5 million higher than the positive NPV of in-house production.
Required:
Explain THREE (3) non-financial factors that Bee Ltd would need to consider before making the decision either to outsource or produce in-house. (3 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Decision Making, Non-Financial Factors, Outsourcing, Quality, Reliability
- Level: Level 2
- Topic: Discounted cash flow
- Series: NOV 2021
