LL is a company that makes and sells clothing made out of wool. It has been having problems manufacturing sufficient garments for its customers for several years as demand has increased significantly. LL's current wool spinning process has been identified as a bottleneck process. It is considering the purchase of an automated spinning machine that it believes will significantly improve the speed of its manufacturing process. In addition it will allow LL to lay off around fifty members of staff (who are heavily unionised). The machine will cost around $5m. LL does not have this cash available, but believes that it will be able to raise these funds from its investors.
LL is a company that makes and sells clothing made out of wool. It has been having problems manufacturing sufficient garments for its customers for several years as demand has increased significantly. LL's current wool spinning process has been identified as a bottleneck process.
It is considering the purchase of an automated spinning machine that it believes will significantly improve the speed of its manufacturing process. In addition it will allow LL to lay off around fifty members of staff (who are heavily unionised).
The machine will cost around $5m. LL does not have this cash available, but believes that it will be able to raise these funds from its investors.
LL will only purchase the machine if it is:
- suitable
- acceptable; AND
- feasible
From the information given above, which of these three criteria does the acquisition of the machine meet?
Suitable and acceptable only
Suitable only
Acceptable and feasible only
Suitable and feasible only
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