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沙发
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发表于 2015-5-5 08:43:40
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>>> 考古
a letter from CEO to CFO to allow funding for building two buildings:
Rental Units increases 4 % annually, rental units's occupancy rate 92%. This means global economy is good and rental unit market is good.
Hope to apply funding for two buildings so that the two buildings will obtain the 4 % increase of the market, those other units under construction or from other developer doesn't matter.
These two building will bring tremendous business to the company.
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In this argument, the author reaches the conclusion that the company needs funding to build the two rental units. To bolster the argument, the author points out that rental units increases 4% annually, and the occupancy rate is 92%, which means the global economic is good and the rental market is good. In addition, the author further suggests that these two buildings will bring tremendous business to the company and the other units under construction can be ignored so far. While the argument appears plausible at the very first glance, a meticulous scrutiny reveals several important concerns that are vital to substantiate argument. The critical logical flaw undermining the conclusion will be elaborated in the following paragraphs.
First of all, the author falsely rests on gratuitous assumption that the 4% increase of the rental units and the 92% of the occupancy rates indicate the good global economy and good rental unit market. While this is a tempting assumption, no evidence is stated in the argument to support this assumption. In fact, it is not necessary the case. For example, it is more likely that the global economy may still in worse, but only rental market slightly increases with 4%. While other industrials are experiencing the winter, it's hard to predict how well the 4% increase will influence on our investment. It is also possible that this is the last year of the increase for rental units market by some historical and statistical prediction research. And any investment on this market will be sunk in several following years. Therefore, the argument is groundless without ruling out all such possibility.
Given the fact the global economy is good and the unit market is good, the author falsely conclude the 4% increase will be the same for the company. This is unconvincing because it is based on the false analogy. The argument rests on the assumption that the market increase will be analogous to the company increase in all respects. Even though the overall market and the company situation share much similarity, they do not necessary share the same trait inferred in the conclusion. For example, the company is new to the market, while the 4% increase data came from all those mature companies in the market. Obviously, the similarity between the market and the company situation is not proved, making the analogy untenable. Thus, it is difficult to digest that the company is likely to experience the same rate of the increase as the market.
Even though the company will increase 4% as the market, it is hard to conclude that these two building will bring tremendous business to the company. It is entirely possible that the costs of the building, including materials, ground cost, labor, law expense, are prohibitively high, even preventing the company to start to earn money in the first 10 years. In short, without convincing data to weigh the cost and expense, the author is premature to draw any conclusion about the earnings.
To summary, argument is flawed due to the above-mentioned reasons and is therefore not convincing as it stands. To buttress argument, the author needs more data and analysis to smooth out all the wrinkles in the line of reasoning. If the author could provide the credible evidence to demonstrate the global economy, and take into account the feasibility of the analogy between the market and the company. Meanwhile, if the author could also provide data to support the conclusion of the earnings, the argument would have been more thorough and convincing.
27', 586 words
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