9780321818171_berk_ch03

Karrilyn credits her finance courses with providing

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Unformatted text preview: little sovereign risk.” Karrilyn credits her finance courses with providing her with the tools to perform her job, and for having set her on an exciting career path. “Without my strong background in finance, I would not be where I am today.” Saint Mary’s University, 2007 “Without my strong background in Finance, I would not be where I am today.” In September 2010, Research In Motion (RIM) decided to directly enter the tablet computer market dominated by Apple’s iPad by unveiling the BlackBerry PlayBook. How did RIM’s managers decide this was the right decision for the company? Every decision has future consequences that will affect the value of the firm. These consequences will generally include both benefits and costs. For example, in addition to the upfront cost of developing the PlayBook’s hardware and software, RIM will also incur ongoing costs associated with future software development, marketing efforts, and customer support for PlayBook buyers. The benefits to RIM include the revenues from PlayBook sales, but also maintaining revenues from BlackBerry users who might othe...
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