How are capital budgeting models affected by potential investments in automated equipment investment decisions?
Discount rates for present value calculations often far exceed a firm's cost of capital. Automated machinery is very costly and may be at a disadvantage in discounted cash flow methods. Qualitative factors associated with automated equipment may not receive any weight or value in current capital budgeting methods. Automated equipment is often interrelated with other investments and should be bundled to reflect this synergism. Finally, there is the opportunity cost of not automating when competitors automate and your firm doesn't.
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All of the following were factors that precipitated the growth of MOTO except:
A. the national toll-free call system. B. the growth of the cellular phone industry. C. falling long distance telecommunications prices. D. the growth of the credit card industry.
A team should make the team leader look good.
Answer the following statement true (T) or false (F)
In Troll Line Fishing Company's suit against UniHarvest, Inc., the jury returns a verdict in Troll Line's favor. UniHarvest files a motion stating that even if the evidence is viewed in the light most favorable to Troll Line, a reasonable jury should not have found in its favor. This is a motion for
A. a judgment in accordance with the verdict. B. a judgment on the pleadings. C. a new trial. D. judgment n.o.v.
The process of underwriting a stock or bond issue requires that the investment bank
A) assure investors that the issue will provide them a high return. B) purchase the entire issue at a predetermined price if the quantity demanded by consumers is insufficient at the predetermined price. C) purchase the entire issue at a predetermined price and then resell it in the market. D) do both A and B of the above.