Marginal cost-benefit analysis and the goal of the firm ken allen, capital budgeting analyst for bally gears, inc., has been asked to evaluate a proposal. the manager of the automotive division believes that replacing the robotics used on the heavy truck gear line will produce total benefits of $507 comma 000 (in today's dollars) over the next 5 years. the existing robotics would produce benefits of $376 comma 000 (also in today's dollars) over that same time period. an initial cash investment of $ 202 comma 800 would be required to install the new equipment. the manager estimates that the existing robotics can be sold for $ 63 comma 000. show how ken will apply marginal cost-benefit analysis techniques to determine the following: a. the marginal benefits of the proposed new robotics. b. the marginal cost of the proposed new robotics. c. the net benefit of the proposed new robotics. d. what should ken recommend that the company do? why? e. what factors besides the costs and benefits should be considered before the final decision is made?

Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from s1 to s2. the price the seller receives for the product after paying the tax is

Data pertaining to the current position of forte company are as follows: cash $437,500 marketable securities 170,000 accounts and notes receivable (net) 320,000 inventories 700,000 prepaid expenses 42,000 accounts payable 240,000 notes payable (short-term) 250,000 accrued expenses 310,000 required: 1. compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. round ratios to one decimal place. 2. compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate columns of the table provided. consider each transaction separately and assume that only that transaction affects the data given. round to one decimal place. a. sold marketable securities at no gain or loss, 75,000. b. paid accounts payable, 135,000. c. purchased goods on account, 100,000. d. paid notes payable, 105,000. e. declared a cash dividend, 125,000. f. declared a common stock dividend on common stock, 45,000. g. borrowed cash from bank on a long-term note, 205,000. h. received cash on account, 130,000. i. issued additional shares of stock for cash, 635,000. j. paid cash for prepaid expenses, 15,000.

1. the political environment in india has proven to be critical to company performance for both pepsico and coca-cola india. what specific aspects of the political environment have played key roles? could these effects have been anticipated prior to market entry? if not, could developments in the political arena have been handled better by each company? 2. timing of entry into the indian market brought different results for pepsico and coca-cola india. what benefits or disadvantages accrued as a result of earlier or later market entry? 3. the indian market is enormous in terms of population and geography. how have the two companies responded to the sheer scale of operations in india in terms of product policies, promotional activities, pricing policies, and distribution arrangements? 4. “global localization” (glocalization) is a policy that both companies have implemented successfully. give examples for each company from the case.