Textbook Problem

Accounting for Government Restrictions Sunbelt, Inc., plans to purchase a firm in Indonesia. It believes that it can install its operating procedure in this firm, which would significantly reduce the firm’s operating expenses. However, the Indonesian government will approve the acquisition only if Sunbelt agrees not to lay off any workers. How can Sunbelt possibly increase efficiency without laying off workers? How can Sunbelt account for the Indonesian government’s position as it assesses the NPV of this possible acquisition?