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Unformatted text preview: however, as sales grow, the inventory needs do not grow as fast. 3. Assets are purchased in discrete quantities (known as “lumpy assets”). Assets must be purchased in large, nondivisable components. These large purchases can create excess capacity that can meet additional sales without increasing the investment in more assets at some time in the future. 4. Projections (estimates) become less accurate past a one year time horizon....
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This note was uploaded on 08/22/2009 for the course FIN 3310 taught by Professor Potts during the Spring '08 term at Baylor.
- Spring '08