An Evaluation of the Different Investment Options for Curbo Company Essay

Recently, Curbo Company has received a large sum of money from the estate of a former stockholder. Management is undecided about the most profitable means of investing this money. The Accounting Department has worked with the Engineering and Production Departments, and the Market Research Department is evaluating the alternatives available. After eliminating a few alternatives that would not fully meet company objectives, they believe the following actions are feasible 1. Hire sales training personnel to upgrade the selling techniques of the marketing force. Management believes that income will increase 100,000 if an excellent market prevails and 90,000 in an average market, and there would be a 20,000 loss in a poor market. 2. Upgrade their present product by employing skilled engineers to improve the quality of the motors contained in the product. With these operations, a sales price increase will be warranted that is expected to result in a 200,000 income increase in an excellent market, a 125,000 income increase in an average market, and a 140,000 loss in a poor market. 3. Manufacture a complementary product that would also increase sales for the present product. Forecasts indicate a 160,000 increase in total income in an excellent market, a 120,000 total income increase in an average market, and a 50,000 loss in a poor market. An assessment of the probabilities for each environmental condition is excellent, 40 percent average, 15 percent and poor, 45 percent. Required 1. Prepare a payoff table for each of the alternatives available. 2. Determine the opportunity cost of the alternatives available. 3. Determine the expected value of the alternative actions being considered. 4. Evaluate the alternatives, including the course of action you would advise the company to take. 5. Assume perfect advance information can be obtained. How much should the company be willing to pay for it?...

Comments

Post a Comment

Popular posts from this blog

Character Analysis of Basil Hallward in The Picture of Dorian Gray, a Novel by Oscar Wilde Essay

The main character in The Picture of Dorian Gray, Dorian, is a man too easily influenced by his surroundings. He is quoted as saying, Basil Hallward is what I think I am Lord Henry is what the world thinks me Dorian is what I would like to bein other ages, perhaps (Wilde). This comparison falls in line with the moral of the story because Dorian is stuck with eternal youth and beauty even though he has a wicked soul. This causes different views of him by people who observe his daily life. Dorian is a sponge throughout the novel that absorbs everything and allows it to shape his personality, morals, and actions. Dorian Gray takes influence from Lord Henry, Basil Hallward, and the culture of society during which the novel was written. Lord Henry is the epitome of a wealthy, hedonistic gentleman seeking only pleasure, with little regard to cost or consequence. Lord Henry Wotton outwardly propounds hedonism, but it is his extreme egotism that drives him to manipulate both Basil Hallward a
Read more

Religious Symbolism in The Blessed Damozel, a Poem by Dante Gabriel Rossetti Essay

Dante Gabriel Rossettis poem The Blessed Damozel is full of religious symbolism. There is talk of saints, and the poem itself takes place in heaven. But underneath the religious symbolism is a deep sensuality, that makes one wonder if the white rose of Marys gift referred to in line nine is the gift of Mary the Virgin, or the somewhat less virginal Mary Magdalene. While the Damozel is in heaven, her appearance in heaven, her behaviors in life, and what happens when she and her lover are reunited suggest some less than virginal dealings, yet the damozel is blessed and resides in heaven. Rossetti was the child of liberals kicked out of Italy a heavily catholic country for their extreme political views. While Rossetti himself was not political, he may have espoused similar views regarding politics and religion as his parents. In the poem The Blessed Damozel, Rossetti was given the chance to essentially create his own heaven. Most everything he wrote seems to show that Rossetti espoused
Read more

An Analysis of the Character of Chichikov in the Poem, Dead Souls by Nikolai Gogol Essay

Dead Souls takes place in the Russia of the late 1800s, where, unlike in America, one must be born into a prosperous family in order to have opportunities. The main character, Chichikov, is clever enough to develop a scheme in which he can rise from being a petty clerk to a respected landowner. In order to do this, Chichikov moves into a new town, pretending to already be a landowner, and begins a quest to buy the names of dead serfs who have not yet been officially reported dead. Each person that Chichkov presents this offer to has a different reaction, starting with the shy and introverted Manilov. Though he does not understand Chichikov's need for the names of these dead serfs, Manilov is a character that is so desperate for company that it does not take any effort to trick him into selling his dead souls cheaply. However, as Chichikov continues his journey, he starts to deal with more clever landowners who become suspicious of his scheme. Chichikov finds that the townsmen know
Read more