The essential difference between a "think global, act global" and a "think global, act local" approach to strategy-making isthat: a. a "think global, act global" approach entails extensive strategy coordination across countries and a "think global, actlocal" approach entails little or no strategy coordination across countries. b. the former aims at implementing the same business model worldwide, whereas the latter aims at implementingcustomized business models to better match local market circumstances. c. the "think global, act local" approach gives local managers more latitude to make minor strategy variations wherenecessary to better satisfy local buyers and to better match local market conditions. d. a "think global, act global" approach involves selling a mostly standardized product worldwide, whereas a "think global, act local" approach entails selling products that are highly differentiated from country to country. e. a "think global, act global" approach involves selling under a single brand name worldwide, whereas a "think global, actlocal" approach entails utilizing multiple brands (typically one for each different country or group of neighboringcountries).

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?