Corporate Finance Assignment

Kethem K Novick Corporate Finance Written Assignment #1 1-4 : page 28 borderline appeal gain psychoanalysis is the economic principle that states that m adepttary decisions should be made and actions interpreted only when the added benefits exceed the added be (p. 15). The bare(a) (added) benefits of the proposed invigorated robotics catch the benefits produced by the new robotics negative the benefits produced by the existing robotics. yield 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 tint the cost of the new equipment less whatever benefits from exchange old equipment Cost of new equipment:$220,000.00 Less: change 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 te rminal 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 any case the obvious cost and benefits, one other factor that should be considered is the gold flow or the intake and outgo of capital (p. 17). Whether a level 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 adopt (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 mustiness satisfy the demands of certain interest groups such as customers, employees, and suppliers (p.11). Stockholders collect 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 trained essay, order it on our website: BestEssayCheap.com

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