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LAURENTIAN BAKERIES
The decision-maker must make a recommendation on a large expansion project. Discounted
cashflowanalysis is required.
In late May, 1995, Danielle Knowles, vice-president of operations for Laurentian Bakeries Inc.,
was preparing a capital expenditure proposal to expand the company’s frozen pizza plant in
Winnipeg Manitoba.If the opportunity to expand into theU.S. frozen pizza
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