Deliverable 6 – capital investments

Competency

Critique organizational investments using forecasting scenarios.

Student Success Criteria

View the grading rubric for this deliverable by selecting the “This item is graded with a rubric” link, which is located in the Details & Information pane.

Scenario

You are a production coordinator for Soapex Corporation, a manufacturing company that manufactures bottles of liquid soap. Soapex has determined that they need to make some strong investments to ramp up production and generate an increase in revenue. Currently, the equipment Soapex uses is over 20 years old, purchased when liquid soap first entered the retail market. While the equipment still works, the company incurs $100,000 annually in maintenance expenses because the equipment is old. Soapex presently produces 1 million cases of liquid soap per year. This soap sells for $3 per case.

Given the age of the equipment, you anticipate a decline in production of 50,000 cases in each of the next five years because of breakdowns in the equipment. You have been researching new production equipment and have found a new machine that will reduce annual operating costs to $48,000 per year and allow an increase in production over the 1 million cases presently being sold by sales and marketing. In conversations with sales and marketing, management believes they can increase sales by 1% per year for the next five years. The new machine will have a fully loaded cost of $370,000 and an expected useful life of 5 years with no salvage value. The old machine can be sold today as scrap for $5,000.

Instructions

Prepare a 6-10 slide PowerPoint presentation for management to demonstrate the following:

  • Using the Net Cash Flow template, develop a schedule of projected cash flows using current equipment, including the reduction in future sales. Insert this information in your PowerPoint presentation.

Module 6 Net Cash flow Template.xlsx

  • Using the Net Cash Flow template, develop a schedule of projected cash flows using discounted cash flows for the proposed new equipment. Insert this information in your PowerPoint presentation.
  • In your PowerPoint presentation, analyze the projected cash flows and evaluate the feasibility of the proposed capital investment.
  • Make a recommendation on the course of action the management of Soapex Corporation should take regarding the capital equipment used in this manufacturing process.

NOTE – Be sure the documents display proper grammar, spelling, punctuation, and sentence structure.

Assessment Requirements/Submission Requirement:
  • 6-10 slide PowerPoint Presentation

A – 4 – Mastery

Schedule of projected cash flows using current equipment is both accurate and cogent.

A – 4 – Mastery

Schedule of discounted cash flows using current equipment is both accurate and cogent.

A – 4 – Mastery

Accurately and cogently evaluates feasibility of the proposed capital investment.

A – 4 – Mastery

Accurate and articulate recommendation.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more