Corporate Finance Assignment

Kethem K Novick Corporate Finance Written Assignment #1 1-4 : page 28 borderline approach proceeds digest 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 bare(a) (added) benefits of the proposed invigorated robotics contact the benefits produced by the new robotics negative the benefits produced by the existing robotics. exertion 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 compare the cost of the new equipment less whatsoever benefits from exchange old equipment Cost of new equipment:$220,000.00 Less: sales event 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 exonerate Benefit:$10,000.00 ground on these findings, it is my opinion that Mr. Ken Allen should suggest 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. anyhow the obvious cost and benefits, one other factor that should be considered is the silver flow or the intake and outgo of cash in (p. 17). Whether a degenerate 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 cod (p. 17). 1-6 : page 28 The Financial Managers primary goal is to maximise the wealth of the firms owners the stockholders (p.10). However, generally speaking, the manager must satisfy the demands of certain interest groups such as customers, employees, and suppliers (p.11). Stockholders request dividends that ultimately come from the firms profits, and without happy customers a! nd employees, the firm is not likely to...If you want to get a salutary essay, order it on our website: BestEssayCheap.com

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