Which of the following, if true, would most strengthen the argument that Taeko Motors should upgrade its technology?
A) The company will be able to recover the cost of the new technology within five years.
B) The cost of maintaining the existing machinery is minimal as the company has long promoted preventive maintenance.
C) The company has an adequate budget to fund the acquisition of the new technology.
D) The supplier of the technology is willing to offer free servicing and maintenance for the first five years.
E) The company recently issued a safety recall of almost 500,000 cars after discovering that the fuel injection systems were defective.
E
You might also like to view...
Goodwill is
a. amortized over the greater of its estimated life or forty years b. only recorded by the seller of a busines c. the excess of the fair value of a business over the d. fair value of all net identifiable assets e. none of the above
Which of the following statements about the capital acquisitions ratio is true?
A. A high ratio indicates less need for outside financing of property, plant and equipment. B. The ratio is computed by dividing cash flow from operations by the average property, plant and equipment, net from the balance sheet. C. A low ratio may indicate a failure to update property, plant and equipment which can limit a company's ability to compete in the future. D. Both A and C are true. E. All the above are true.