According to the trade-cycle model, which of the following actions should an organization in a high-income country take when its products mature?
A) shift the location of production to low-wage countries
B) innovate to remain competitive in the market
C) increase home-country production
D) shift the organization's base to emerging countries
A
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Forecasts for project ST are shown above. Using a discount rate of 10%, the project has a positive NPV of $6,074.69. Estimate within $100 the level of sales revenue that will result in an NPV of $0.00. No other variables will change
Year 0 Year 0 Year 1 Year 2 Revenue $15,000 $15,000 Variable Cost ($5,000) ($5,000) Depreciation ($200) ($200) Fixed Cost ($350) ($350) Operating Income $9,450 $9,450 Taxes at 30% ($2,835) ($2,835) NOPAT $6,615 $6,615 Capital Investment ($5,753) Free Cash Flow $6,815 $6,815 NPV $6,074.69
When analysts develop feasible projections of the future based on monitored changes and trends, they are engaged in what activity?
a. Scanning c. Forecasting b. Monitoring d. Assessing