Which of the following is FALSE about why high-tech companies analyze technology life cycles?
a. To help stay abreast of new generations of technology that may prove to be a sources of competition in the future.
b. To understand that when a new technology appears, it may underperform the existing generation (legacy) technology.
c. To manage the tension between investing in incremental innovations (along an existing S-shaped curve) and investing in breakthrough innovations (jump to a new S-shaped curve)
d. To understand the notion of creative destruction.
e. To help industries drive network externalities.
E
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Nonlinear programming models cannot be transformed into goal programming models due to their complexity
a. True b. False
Outlaws is a general goods retail chain in the High Plains region. Forecast the financial statements for Outlaws for Year 7. Use the percent of sales method based on Year 6 and the assumptions listed below
Please note the ratios provided in the table which are useful for making the forecast. Sales growth of 5.5%. The cost of debt is 6.25%. The tax rate is 35%. The depreciation rate is 6%. CAPEX is $300 Million. The following accounts are constant: Goodwill and common stock. Long term debt is the PLUG variable. No dividends. Forecast the financial statements for Outlaws. What are the additional funds needed (AFN) in Year 7? The AFN is the change in the plug account from Year 6 to Year 7. Year 6 Ratios Forecast Revenue $29,210 $30,817 COGS 22,152 0.758370 SG&A 5,245 0.179562 Dep. Exp. 621 EBIT 1,192 Int. Exp. 277 EBT 915 Inc Taxes 288 Net Income $627 ASSETS Year 6 Ratios Forecast Total Current Assets $4,385 0.150120 PP&E 9,637 Goodwill 678 678 Total Assets $14,700 LIABILITIES AND OWNER'S EQUITY Total Current Liabilities 3,651 0.124991 Long Term Debt 4,208 Total Liabilities $7,859 Owner's Equity Common Stock 1,192 1,192 Retained Earnings 5,089 Total Owner's Equity 6,281 Total Liabilities & Owner's Equity $14,700 A) -$381 million B) -$290 million C) -$91 million D) $127 million E) $189 million