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San Diego State University Operations And Supply Chain Management Assignment Help - Interst


Question - Rate of Return and Optimal Capital Structure. Central Furniture Company recently announced plans to expand
its production capacity by building and equipping two new factories to operate in parallel with existing
production facilities. The expansion will double the assets of the firm. The proposed expansion has received a
lot of attention from industry observers due to the cyclical nature of the furniture industry and the size of the
project. The new plants will require fewer workers than current plants of similar capacity because the new
facilities will be highly automated.
Central Furniture must now decide how the plant expansion will be financed. The project will require $5 million
in new funds and the expected return on the new as ...Read More

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