Your CEO wants to divest the Northern business unit because unit sales are decreasing. She directs you to evaluate a potential sale. Which of the following analyses should you conduct? A. Identify buyers that might value the business unit more than your company does. B. Calculate the NPV of the unit’s future projected cash flows. C. Identify which of the company’s other business units rely on the unit for sales leads. D. A, B, and C. E. A and C

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 3.8A
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Your CEO wants to divest the Northern business unit because unit sales are decreasing. She directs you to evaluate a potential sale. Which of the following analyses should you conduct?

A. Identify buyers that might value the business unit more than your company does.

B. Calculate the NPV of the unit’s future projected cash flows.

C. Identify which of the company’s other business units rely on the unit for sales leads.

D. A, B, and C.

E. A and C

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