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Essay text:
After the demand is met for the automatic paint system, the new light weight compressor will be produced and sold to meet the projected demand.
Criterion: To maximize future cash flows
When deciding the best alternative, the company should choose the one that will maximize future cash flow. Cash flows are cash transactions that either cause the company to spend or receive actual monetary units. The decision may change the level of operation, meaning it will affect both costs and revenues; therefore, the decision should maximize the net difference between the two. This will allow for the highest possible profit within the production capacity of the warehouse...
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