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GianAuto
Essay specific features
Written by:
Sandra C
Date added:
March 31, 2014
Level:
University
Grade:
B
No of pages / words:
2 / 485
Was viewed:
3906 times
Rating of current essay:
Essay content:
This forecast is dependent on our Sales, Materials, Supply and Depreciation Assumptions (see below). In sum, if GianAuto continues plant operations, it will recognize a significant cost savings every year after 2005.
Sales, Materials, Supply, and Depreciation Assumptions: The following are assumptions that have significant impact on our recommendation...
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Consequently, materials and supply costs will increase by 10%, as will any unit-based depreciation for equipment.
· Depreciation Assumption
Up to this point, the company has chosen to use the units-of-production method for equipment depreciation. If GianAuto discontinues operations but does not sell or absorb the equipment into other operations, they must depreciate the equipment using the straight-line depreciation method since no units are being produced...
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