Question
question 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
question
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. 3 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
pls, answer this question the highlighted question.
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.
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