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Unformatted text preview: g department of investment firm reaches the conclusion that the firm should encourage investment in Solario—a new manufacturer of solarpowered products. The basis for this recommendation is the expectation that solar energy will soon become more cost efficient and attractive than other forms of energy. This expectation is based on recent declines in the cost of equipment used to convert solar energy into electricity and on new technologies that are being developed for this purpose. An additional reason give in support of this recommendation is that Solario’s chief executive was a member of the financial planning team for a company that has shown remarkable growth since its recent incorporation. While this argument has some merit, there are a few assumptions that deserve attention. In the first place, the author assumes that the previous business experience of Solario’s chief executive will be an asset in the development of the new company. While this may be the case, the fact that the two companies deal in vastly different products is cause for some concern. The executive’s expertise in the softwareengineering business will not necessarily be applicable to the solarpowered products...
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This note was uploaded on 05/05/2009 for the course ECAS asdfasdf taught by Professor Asdfaf during the Spring '09 term at Academy of Art University.
- Spring '09