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Reinvestment Options
You are a start up in the highly competitive smart phone market. Your introductory offering to the marketplace was well received and sales were more than very good. You have two options: reinvest the profits into new equipment or invest in R&D. Give the pros and cons for doing each option. Also, are there any creative financing options available for R&D that would allow you to do both?
*Please provide any references used please*
Verified Expert
The paper is about the pros and cons of reinvesting profit in tools and R&D. The paper talks about the significant benefits businesses will have when invested in R&D rather than investing on tools and equipment. In paper it is suggested that businesses need to invest a good portion of profit for business growth which is also conducive to maximise profit and bring innovation. Investing in R&D helps businesses to identify the opportunity present in the market. further it also supports to improve present product and service and maximise employee retention. The paper has been prepared using Microsoft word.
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