When Making the Decision to Replace an Old Factory Machine

question 139

Essay

When making the decision to replace an old factory machine with a new one, financial and non-financial factors are considered. As with any investment, a company investing in factory machinery expects that the new machinery will generate a future return.

Required:

a. Define the two types of returns that can be expected from investments in a long-term asset such as factory machinery.

b. List three financial factors that a company might consider before making an investment in factory machinery.

c. List three non-financial factors that a company might consider before making an investment in factory machinery.

d. List one cost that is not included in a decision to replace an old factory machine with a new one.

Understand the impact of different external environments on business strategies.

Acknowledge the significance of differentiation and competitive strategies in business success.

Realize the critical factors that influence the competitive dynamics within industries.

Understand the concept and importance of strategic planning in business.

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Definitions:

Auteur

A director (or, less commonly, a producer or screenwriter) with a recognizable and distinctive style who can be considered the sole “author” of a film.

Thematic Concerns

The underlying topics or issues that a film, novel, or other artistic work seeks to explore or address.

Way Down East

A silent film directed by D.W. Griffith, notable for its pioneering cinematography and storytelling techniques.

The Cheat

"The Cheat" is a 1915 silent film directed by Cecil B. DeMille, recognized for its influential use of lighting and moral complexity in storytelling, focusing on themes of betrayal, social status, and redemption.