An Increased Number of Companies Are Investing in Advanced Manufacturing

question 29

Essay

An increased number of companies are investing in advanced manufacturing systems.
Required:
A. Many proposed advanced manufacturing systems have a negative net present value when discounted-cash-flow analysis is used. Explain several causes of this situation.
B. Two major benefits of advanced systems are greater flexibility in the manufacturing process and improvements in product quality. Explain how these benefits can create problems when performing discounted-cash-flow analysis.

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Definitions:

Attachment Theory

Attachment theory is a psychological model that describes the dynamics of long-term and short-term interpersonal relationships between humans.

Neo-analytic Thinkers

Individuals who contribute to neo-analytic theories, focusing on aspects like self and relationships in understanding personality development.

Clinical Observations

The systematic collection and analysis of patient data to understand and monitor their condition in a clinical setting.

Psychodynamic Processes

Psychological activities and mechanisms underlying human behavior and feelings, often focused on the influence of the unconscious mind.