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4. I suggest we should consider what the firm values most. If the firm emphasize its asset, I might recommend using FIFO,because It will give the firm a better financial statement. If the firm cares about its cash flow, I would recommend using LIFO.
3. I would say it is a good question. I would consider both its future marketing performance and its future cash flow. For the marketing performance, I would think about how the product it can produce will work in market. I mean its sale forecast, and some other related stuffs. Beyond that, I would consider how much cash flows it will bring to me and what is its present value? Whether it's NPV is positive? |
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