In the era of the Fourth Industry Revolution (IR 4.0), businesses' information and actions must be timely, relevant, and
Posted: Wed May 18, 2022 10:26 pm
In the era of the Fourth Industry Revolution (IR 4.0),
businesses' information and actions must be timely, relevant, and
accurate, which will affect their business performance. Thus,
sooner or later, companies must embed IR 4.0 into their businesses,
such as through the use of artificial intelligence (AI) and
robotics. AI is the science and engineering behind the development
of intelligent machines, most notably intelligent computer
programmes. It is comparable to the similar task of using computers
to understand human intelligence. Meanwhile, robotics advancements
are a combination of computer science, mechanical and electronics
engineering, and science that has resulted in machines or related
kinds of automation currently doing the work of humans in a wide
range of contexts Knowing the importance of IR 4.0, Sukses
Berhad is currently planning to integrate AI and robotics into
their production and business operations. Thus, the company expects
that there will be a significant positive impact on their business
performance that will reflect the performance measurements of
return on investment (ROI), residual income (RI), return on sales,
and economic value added (EVA). Sukses Berhad has five divisions
that operate independently of one another and is currently
evaluating a potential investment in one of its divisions, named
the North Division. The division's desired rate of return is 10%.
The financial information for the year 2021 includes total sales of
RM6,000,000, operating income of RM1,900,000, total assets of
RM16,000,000, and current liabilities of RM4,500,000. The tax rate
is 35% and the weighted average cost of capital (WACC) is 10%.
Required: a) Calculate and interpret the results on the following performance measurements for North division. (MLO3) i) Return on investment (ROI) ratio Residual income (RI) iii) Economics value added (EVA). b) As a financial controller of Sukses Berhad, you are required to give recommendations to the top management on how the integration of artificial intelligence and robotics into their production and business operations can improve the company's ROI, RI, ROS, and EVA. (Hints: Refer to journal articles to support your discussion.) (MLO4)
businesses' information and actions must be timely, relevant, and
accurate, which will affect their business performance. Thus,
sooner or later, companies must embed IR 4.0 into their businesses,
such as through the use of artificial intelligence (AI) and
robotics. AI is the science and engineering behind the development
of intelligent machines, most notably intelligent computer
programmes. It is comparable to the similar task of using computers
to understand human intelligence. Meanwhile, robotics advancements
are a combination of computer science, mechanical and electronics
engineering, and science that has resulted in machines or related
kinds of automation currently doing the work of humans in a wide
range of contexts Knowing the importance of IR 4.0, Sukses
Berhad is currently planning to integrate AI and robotics into
their production and business operations. Thus, the company expects
that there will be a significant positive impact on their business
performance that will reflect the performance measurements of
return on investment (ROI), residual income (RI), return on sales,
and economic value added (EVA). Sukses Berhad has five divisions
that operate independently of one another and is currently
evaluating a potential investment in one of its divisions, named
the North Division. The division's desired rate of return is 10%.
The financial information for the year 2021 includes total sales of
RM6,000,000, operating income of RM1,900,000, total assets of
RM16,000,000, and current liabilities of RM4,500,000. The tax rate
is 35% and the weighted average cost of capital (WACC) is 10%.
- In The Era Of The Fourth Industry Revolution Ir 4 0 Businesses Information And Actions Must Be Timely Relevant And 1 (38.66 KiB) Viewed 56 times