Note regarding the In Business feature:
"Trading In That Old Car" feature The "In Business" feature in Chapter 13 entitled "Trading in That Old Car?" is based an article appearing in Consumer Reports in August 2000. The feature sets forth information about the costs of keeping an existing car or replacing it. After noting the Consumer Reports is ordinarily extremely careful in its analysis, the feature indicates that one financial item that would clearly differ substantially between the alternatives was omitted and asks you to identify that item. The item that seems to have been omitted in the analysis is the current trade-in value of the old car. The current trade-in value of the old car would be relevant to the decision since the purchase price of the new car would be reduced by the trade-in value of the old car. |
Internet Exercise #1Go to the Flowers Foods website at http://flowersfoods.com and click on the Virtual Factory Tour link (accessible from the Company Info pull-down menu). Take the tour and learn about the process used to make the company's oatmeal cookies. After taking the tour, answer the following questions: - What capital investments has the company made in its bakery? Identify and briefly describe each.
- Which parts of the production process probably have been automated?
- Which parts of the production process are still labor-intensive?
Internet Exercise #2Perform an Internet search using the term, capital budgeting. Select and read a case study or article from the results of your search. (Make sure that you do not select an instructor's lecture notes or a class assignment from the results of your search.) Then, write a brief paper (3 - 5 paragraphs) that summarizes the case study or article. (Your paper should provide the appropriate citation. If necessary, you may wish to refer to the following website, which includes information about citations: http://www.cod.edu/library/research/citenet.htm.) |
