ECO 550 Assignment 4 Long-Term Investment Decisions

Assume that the industry you wrote about in Assignment 3 wants to expand and has to make some longterm capital budgeting decisions. Now the industry is confronted with government regulations to oversee the merger.

Write a four to five (4-5) page paper in which you:

1. Explain why government regulation is or is not needed, citing the major reasons for government

involvement in a market economy. Provide support for your explanation.

2. Justify the rationale for the intervention of government in the market process in the U.S.

3. Assume that the company’s is considering a merger. The possible merger currently faces some

threats and that the industry decides on self-expansion as an alternative strategy, describe the

additional complexities that would arise under this new scenario of expansion via capital projects.

4. Analyze how the different forces will come together to create a convergence between the

interests of stockholders and managers indicating the most likely impact to profitability. Provide

support for your response.

5. Use at least three (3) high-quality academic resources in this assignment. Note: Wikipedia and

other Websites do not qualify as academic resources.

Assume that the industry you wrote about in Assignment 3 wants to expand and has to make some longterm capital budgeting decisions. Now the industry is confronted with government regulations to oversee the merger.