Corporate Finance Assignment

Kethem K Novick Corporate Finance Written Assignment #1 1-4 : page 28 borderline salute improvement compendium is the economic principle that states that m adepttary decisions should be made and actions taken only when the added benefits exceed the added be (p. 15). The peripheral (added) benefits of the proposed invigorated robotics fitted the benefits produced by the new robotics negative the benefits produced by the existing robotics. fruit with new heavy equipment$560,000.00 less(prenominal): Production with overaged($400,000.00) Marginal (added) Benefits:$160,000.00 The marginal (added) cost of the proposed new robotics fitting the cost of the new equipment less every benefits from exchange old equipment Cost of new equipment:$220,000.00 Less: exchange of old equipment:($70,000.00) Marginal (added) Costs:$150,000.00 The net benefit is equal to the constitutional Benefits less the total Costs: $160,000.00 Benefits ($150,000.00) Costs sack up Benefit:$10,000.00 ground on these findings, it is my opinion that Mr. Ken Allen should advocate the company secure the new equipment. Because the marginal (added) benefits exceed the marginal (added) costs, the substantial would pay off a net benefit of $10,000 as a precede of purchasing the new equipment.

in addition the obvious cost and benefits, one other factor that should be considered is the money flow or the intake and outgo of currency (p. 17). Whether a smashed earns a profit or experiences a loss, it moldiness have a sufficient flow of cash to meet its obligations as they get under ones skin referable (p. 17). 1-6 : page 28 ! The Financial Managers primary goal is to increase the wealth of the firms owners the stockholders (p.10). However, generally speaking, the manager mustiness satisfy the demands of certain interest groups such as customers, employees, and suppliers (p.11). Stockholders earn dividends that ultimately come from the firms profits, and without happy customers and employees, the firm is not likely to...If you want to get a apt essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper