【正文】 EXHIBIT 4CAPITAL EXPENDITURE APPROVAL PROCESSApplicationForEmergencyspending Start Project Submit AFE Quarterly Committed No To . Funds available for emergency only Yes (Dollar value ??) In No less No Annually Strategy than $300 Yes yes On No Less No Present Quarterly Profit than revised Plan $1000 plan Yes Yes Exec. Less No Committee Project Than Review amp。 adding a spiral freezer, $ million。D, product improvements, quality control and concurrence with legal, government, health, safety or insurance requirements including pollution control (Class 4). A project spending audit was required for all expenditures。 equipment or facility replacement (Class 3)。LAURENTIAN BAKERIESThe decisionmaker must make a remendation on a large expansion project. Discounted cash flow analysis is required.In late May, 1995, Danielle Knowles, vicepresident of operations for Laurentian Bakeries Inc., was preparing a capital expenditure proposal to expand the pany’s frozen pizza plant in Winnipeg Manitoba. If the opportunity to expand into the . frozen pizza market was taken, the pany would need extra capacity. A detailed analysis, including a net present value calculation, was required by the pany’s Capital Allocation Policy for all capital expenditures in order to ensure that projects were both profitable and consistent with corporate strategies.COMPANY BACKGROUHDEstablished in 1984, Laurentian Bakeries Inc. (Laurentian) manufactured a variety of frozen baked food products at plants in Winnipeg (pizzas), Toronto (cakes) and Montreal (pies). While each plant operated as a profit center, they shared a mon sales force located at the pany’ head office in Montreal. Although the Toronto plant was responsible for over 40% of corporate revenues in fiscal 1994, and the other plants was accounted for about 30% each, all three divisions contributed equally to profits. The pany enjoyed strong petitive positions in all three markets and it was the low cost producer in the pizza market. Ine Statements and Balance Sheets for the 1993 to 1995 fiscal years are in Exhibits 1 and 2, respectively.Laurentian sold most of its products to large grocery chains, and in fact, supplying several Canadian chains with private label brand pizzas generated much of the sales growth. Other sales were made to institutional food services.The pany’s success was, in part, the product of its management’s philosophies. The cornerstone of Laurentian’s operations was its including a mitment to a business strategy promoting continuous improvement。 for example all employees were empowered to think about and make suggestions for ways of reducing waste. As Danielle Knowles saw it: “Continuous improvement is a way of life at Lauremtian.” Also, the pany was known for its above – average consideration for the human resource and environmental impact of its business decisions. These philosophies drove all policymaking, including those policies governing capital allocation.Danielle KnowlesDanielle Knowles’s career, which spanned 13 years in the food industry, had included positions in other functional areas such as marketing and finance. She had received an undergraduate degree in mechanical engineering from Queen’s University in Kingston, Ontario, and a master of business administration from the Western Business School.THE PIZZA INDUSTRYMajor segments in the pizza market were fr