You Are an Analyst for a Firm That Imports and Distributes

question 2

Essay

You are an analyst for a firm that imports and distributes specialty oils and vinegars,and they are considering the development of a business intelligence capability for the firm.They have asked you to identify the key elements that will be required.

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from its total revenue.

Straight-Line Depreciation

A method of allocating the cost of a fixed asset evenly across its useful life.

Internal Rate of Return

A financial metric used to estimate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows from a particular project equal to zero.

Present Value

A calculation that determines the current value of a future amount of money or stream of cash flows given a specified rate of return.