Pricing and Investment Decisions

Influence of Laws on Pricing Decision Assignment Help There are varieties of laws that influence the pricing decisions of a company. Pricing decisions are influenced by state and federal government laws, rules and regulations. Different federal laws such as Robinson Patman Act, Unfair Trade Laws and Fair Trade laws, etc. provide directions to the companies to set the price of products and services in the market. In addition to this assignment help, laws and regulations also increase the competition in the industry, which influences the pricing decisions of the company on products and services. In the market place, several laws have aim to increase the competition by outlawing price fixing and deceptive pricing that influence the decision of companies.

A part from this, the laws and regulations also help in reducing the price discrimination in the market and also harm competition that is created through the price discrimination (Pride & Ferrell, 2011). Furthermore, the laws also prohibits companies from discriminating among their customers in setting prices that influences the decision that at what level prices will be set in the market. On the other hand, legal and regulatory issues influence the pricing decisions of a company, which ultimately affect their profit ratio.

In order to control inflation, government can implement rules and regulations, as per that company cannot increase and decrease prices of product at certain limit. This also impacts the pricing decisions and strategies of the company. Some other laws such as Sherman Antitrust Act, Federal Trade Commission Act, Clayton Act and Wheeler Lea Act, etc. are also influencing the pricing decisions of a company in the country. In this, the Sherman Antitrust Act prohibits the price fixing among the firms in an industry and makes it illegal. This act is also prohibits the conspiracies to control price. Some taxation laws also influence the pricing decisions of the company. If the tax rate is high in the market, company takes an increased price decisions for the product or service. If the tax rate in low in the country, the producer takes a low price decisions on the products and services (Boone & Kurtz, 2009).

Justify Investment in Research Project It is a sound assumption by R&D manager for evaluating the investment and R&D activities. The Discounted Case Flow method helps the manager in providing the assessment criteria for investment decisions in company’s expansion, renovation, replacement of existing system R&D programs and acquisitions, etc. Apart from this, this discounted case flow method is related to the current investment that will be helpful for the company or manager to provide better returns in long term. By using time value of money and risk premium, company or manager can check the investment and also determine that the investment has worth or not for the company. Through this, company can also make supportive payment for the shareholders.

It is analyzed that if there is any delay in payment for shareholders, the payment can be made by the cash (Schon, 2007). Moreover our Australian business paper experts says that in risk premium, investors also have option to receive extra returns that are beneficial for the investors in terms of growth. Due to uncertainty factors related to the outcome of research, manager also have a chance in R&D programs to compensate investors for all the investments done by them. It can be done by providing high patent price, license issuing price, by using the products in the market place, etc.

For this, it is required that manager or company has a better research plan that would be based on the clear and well define objectives. It would be helpful for the manager or company to rank the project in order to gain a better return on investment. If the company implements big and early cash flow in the organization, it generates low returns in long term (Crundwell, 2008).     References Boone, L. E. & Kurtz, D. L. (2009). Contemporary Marketing. USA: Cengage Learning. Crundwell, F. K. (2008). Finance for Engineers: Evaluation and Funding of Capital Projects. USA: Springer. Pride, W. M. & Ferrell, O. C. (2011). Marketing. USA: Cengage Learning. Schon, D. (2007). The Relevance of Discounted Cash Flow (Dcf) and Economic Value Added (Eva) for the Valuation of Banks. Germany: GRIN Verlag.