Fony Corp., headquartered in China, is a leading manufacturer of electronic devices and
solutions intended for professional markets. The company is considering upgrading the
technology currently being used at Fony’s manufacturing facility, located in Guangdong, that
specializes in producing lithium-ion batteries, which are used to power laptops, cameras, cell
phones, and other similar gadgets. The new technology is expected to increase efficiency levels
and will also allow for greater adherence to quality standards.
4) Which of the following, if true, would most strengthen the argument that Fony Corp. should
upgrade its technology?
A) The market for consumer electronics such as laptops, cameras, cell phones, and other similar
gadgets is in the late maturity stage.
B) Fony will be able to recover the cost of the new technology within eight years.
C) Fony’s main client account is at risk after the client had to recall nearly 2 million notebooks
owing to defective batteries.
D) The existing technology is currently functioning at the optimal level and the cost of
maintenance is minimal.
E) Fony last upgraded its technology six years ago and it has an adequate budget to fund the
acquisition.