You and your colleague, michael, are debating how to best handle a large expenditure on a piece of machinery as a capital budgeting decision. michael says that his accounting background suggests that because the benefits of this large piece of machinery will be realized over the project's ten-year life, so should its costs. discuss why you disagree or disagree with michael.

You are the cfo of a u. s. firm whose wholly owned subsidiary in mexico manufactures component parts for your u. s. assembly operations. the subsidiary has been financed by bank borrowings in the united states. one of your analysts told you that the mexican peso is expected to depreciate by 30 percent against the dollar on the foreign exchange markets over the next year. what actions, if any, should you take