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Managerial Economics: Applications, Strategy and Tactics 12th Edition by James McGuigan, Charles Moyer, Frederick Harris
Edition 12ISBN: 9781439079232Managerial Economics: Applications, Strategy and Tactics 12th Edition by James McGuigan, Charles Moyer, Frederick Harris
Edition 12ISBN: 9781439079232 Exercise 1
One of the approaches for the Southern Company to comply with the Clean Air Act is to adopt fuel-switching technology. Do you think this strategic flexibility would have value to Southern Company's shareholders Why
Explanation
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Yes Southern Company decision to adopt fuel-switching technology would have created value to the Company's shareholder. This is because adoption of fuel-switching technology is a real option for the company which might make Southern net present value (NPV) positive. The positive NPV means that value to the Company's shareholders would be maximized.
Managerial Economics: Applications, Strategy and Tactics 12th Edition by James McGuigan, Charles Moyer, Frederick Harris
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