Question Details

Should Blades establish a subsidiary in Thailand 


1. Should the sales and the associated costs of 180,000 pairs of roller blades to be sold in Thailand
under the existing agreement be included in the capital budgeting analysis to decide whether
Blades should establish a subsidiary in Thailand? Should the sales resulting from a renewed
agreement be included? Why or why not?
2. Using a spreadsheet, conduct a capital budgeting analysis for the proposed project assuming that Blades renews the agreement with Entertainment Products. Should Blades establish a subsidiary in Thailand under these conditions?




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