Capital Budgeting from Using Accounting and Financial Information: Analyzing, Forecasting,

    You are playing the role of the divisional manager of the new e-bike division of Fox Factory Holding Corporation. The divisional manager is preparing to request funding to introduce the product and begin sales. Three options have been identified (note that these are fictitious assumptions): Produce the new e-bike internally, Outsource manufacturing to another manufacturer, and License the design to an existing company for royalties on future sales. In your presentation, Prepare a convincing proposal for each of the three options for producing Fox Factory’s e-bikes. List the pros and cons of each option, along with an estimate of the capital required. Capital consists of the costs of new equipment, manufacturing capacity, automation, and other large investments needed for each option.