Sunday 19 February 2017

Product Life Cycle is an important concept while conceiving any idea related to a new product. What are the characteristics of Product Life Cycle


Assignment Solutions, Case study Answer sheets
Project Report and Thesis - Contact
www.mbacasestudyanswers.com
ARAVIND – 09901366442 – 09902787224

Strategic Cost Management

1. Band-Box is considering the purchase of a new wash and dry equipment in order to expand its operations. Two types of options are available: a low-speed system (LSS) with a Rs 20,000 initial cost and a high speed system (HSS) with an initial cost of Rs 30,000. Each system has a fifteen year life and no salvage value. The net cash flows after taxes (CFAT) associated with each investment proposal are:

Low speed system (LSS) High speed system (HSS)

CFAT for years 1 through 15 Rs 4,000 Rs 6,000

Which speed system should be chosen by Band-Box, assuming 14 per cent cost of capital? (10 Marks)

2. Product Life Cycle is an important concept while conceiving any idea related to a new product. What are the characteristics of Product Life Cycle? (10 Marks)

3. A) A startup company has opted for low cost provider strategy for pricing its products. You are requested to enumerate the downside of such a strategy. (5 Marks)

3. B) Activity based management information has a high positive impact on management decision making. List down the management decision areas that have been benefitted by activity based management technique. (5 Marks)

Assignment Solutions, Case study Answer sheets
Project Report and Thesis - Contact
www.mbacasestudyanswers.com
ARAVIND – 09901366442 – 09902787224


No comments:

Post a Comment