Creativity and diversity can lead to outcomes that both maximize profit and enhance social well-being. Business leaders use measurable factors to help determine design and development decisions, “go” or “no-go” milestones, financial models, and many “what if” scenarios. In this process, the new product or service is considered as part of a system. 

You rocked your BMC and received a great response from the experienced project manager (PM). As you read the feedback, you realize that it’s now time to develop the financial component. In the comments, the PM also stated that no matter how good an idea is, to senior management, it’s a “no-go” if the new product or service does not produce sales. 

In preparation for your funding pitch, the PM also warns that funding pitches are quick and decisive. Including too much information could overwhelm senior management, cause more questions, and erode the purpose of the funding pitch. 

The PM’s directive at this point is for you to develop a 24-month pro forma that demonstrates the potential profitability of the new product or service in an income statement. You will use the Module Six Assignment Template linked in the Guidelines for Submission section to complete this assignment.

You may use the current company’s income statement to project what can be added to the company’s profitability. This can be found in the company’s 10-K. Look to other companies in the marketplace with products or services similar to the one you are proposing as a basis for your projections. Additionally, you may use the company’s current year numbers and key assumptions based on your analysis of the market to project into the future. Remember, these numbers are purely speculative.

In the template, you will specifically address the following:

• Previous fiscal year: Identify historical information for the previous fiscal year.
• 24-month projections: Speculate projections for 24 months.
• Explanation of assumptions: Explain how you were able to speculate appropriate assumptions

In this assignment, your goal is to use CVP analysis in a presentation of your project to enable a prospective investor to decide if your project is worth investing in. You will apply the concepts of CVP analysis learned from the assignments Titled: Course Project—Working Ahead to the project you selected from assignment Titled: Project Approval Input.

Assignment Overview:

From the Microsoft Excel worksheet you developed in the assignment Titled: Course Project-Working Ahead, create a basic pro forma statement necessary to convince someone to provide the start-up funding of the project and then use this information, along with other outside research to create a Microsoft Power Point presentation. The slides of your presentation should be visually appealing—only containing the key points while the speaker notes associated with each slide should provide the essential details.

Assignment Tasks:

To create a pro forma statement:

1.Summarize the company and explain CVP and Capital budgeting. Use outside resources to best explain CVP and capital budgeting.

2.Identify and list the various costs—fixed and variable, direct and indirect—required to execute the project. 

3.Calculate the break-even point for the project and the expected financial returns. (This is the work you have been doing in the CVP template). Make sure you show your Excel formulas or provide calculations so the instructor can review your work. Save your final calculations as MS6010_M5A2_CVP_Lastname_Firstinitial.xls. The completed template must accompany the slide presentation. 

4.Include a brief discussion of key points of any intangible benefits or costs associated with the project. 

5.Supplement your pro forma statement with sufficient background information to enable a prospective investor to decide if your company is worth investing in. ◦The detail must have enough historic data to give an investor an understanding of trends. ◦You should also have sufficient written background so that a potential investor understands the business. Use the speaker notes area of your presentation to add background information that you would communicate verbally in a presentation. This background information should be 1 to 2 pages in length.

Submission Details:

Support your predictions and suggestions with scholarly resources and empirical evidence. Use APA format to cite your sources. Use this APA Citation Helper as a convenient reference for properly citing resources.

Your submission should include the following.

•Your MS Excel worksheet named MS6010_M5A2_CVP_Lastname_Firstinitial, detailing all calculations. 

•A minimum of 15 Microsoft PowerPoint slides (full copy of slides with notes) presentation. 

•Include the required information concisely highlighting only the key points necessary for the purpose of this presentation, which is to convince a prospective investor to decide if your project is worth investing in. 

•Your presentation should include sections addressing the topics listed and presented in bulleted format, avoiding long paragraphs of content. 

•Support your predictions and suggestions with scholarly resources and empirical evidence. 

•Use APA format to cite your sources. 

•Speaker notes totaling 2–3 pages providing the background summary and details for each slide.

By Sunday June 24, 2018 , submit the final presentation to the  Submissions Area.

Grading Criteria

Assignment Components

From Project Approval Input assignment   

Complete the Project Approval Input and answer the questions provided.

Excel Worksheet Requirements:

Identify the various revenues, expenses, costs, expenses, and cash flows. If a manufacturing company and investment deals with projects, the analysis breaks down costs into fixed and variable, direct and indirect.

Calculate the CVP or break-even point for the project.  

Calculate NPV and IRR. Provides the numeric viability of the project investment.

Slide Presentation Requirements:

Includes a minimum of 15 slides   

Cover page    

Company summary    

Data from Excel Worksheet   

Analysis slides     

Final recommendations     

Speaker notes on each slide

In this assignment, your goal is to use CVP analysis in a presentation of your project to enable a prospective investor to decide if your project is worth investing in. You will apply the concepts of CVP analysis learned from the assignments Titled: Course Project—Working Ahead to the project you selected from assignment Titled: Project Approval Input.

Assignment Overview:

From the Microsoft Excel worksheet you developed in the assignment Titled: Course Project-Working Ahead, create a basic pro forma statement necessary to convince someone to provide the start-up funding of the project and then use this information, along with other outside research to create a Microsoft Power Point presentation. The slides of your presentation should be visually appealing—only containing the key points while the speaker notes associated with each slide should provide the essential details.

Assignment Tasks:

To create a pro forma statement:

1.Summarize the company and explain CVP and Capital budgeting. Use outside resources to best explain CVP and capital budgeting.

2.Identify and list the various costs—fixed and variable, direct and indirect—required to execute the project. 

3.Calculate the break-even point for the project and the expected financial returns. (This is the work you have been doing in the CVP template). Make sure you show your Excel formulas or provide calculations so the instructor can review your work. Save your final calculations as MS6010_M5A2_CVP_Lastname_Firstinitial.xls. The completed template must accompany the slide presentation. 

4.Include a brief discussion of key points of any intangible benefits or costs associated with the project. 

5.Supplement your pro forma statement with sufficient background information to enable a prospective investor to decide if your company is worth investing in. ◦The detail must have enough historic data to give an investor an understanding of trends. ◦You should also have sufficient written background so that a potential investor understands the business. Use the speaker notes area of your presentation to add background information that you would communicate verbally in a presentation. This background information should be 1 to 2 pages in length.

Submission Details:

Support your predictions and suggestions with scholarly resources and empirical evidence. Use APA format to cite your sources. Use this APA Citation Helper as a convenient reference for properly citing resources.

Your submission should include the following.

•Your MS Excel worksheet named MS6010_M5A2_CVP_Lastname_Firstinitial, detailing all calculations. 

•A minimum of 15 Microsoft PowerPoint slides (full copy of slides with notes) presentation. 

•Include the required information concisely highlighting only the key points necessary for the purpose of this presentation, which is to convince a prospective investor to decide if your project is worth investing in. 

•Your presentation should include sections addressing the topics listed and presented in bulleted format, avoiding long paragraphs of content. 

•Support your predictions and suggestions with scholarly resources and empirical evidence. 

•Use APA format to cite your sources. 

•Speaker notes totaling 2–3 pages providing the background summary and details for each slide.

By Sunday June 24, 2018 , submit the final presentation to the  Submissions Area.

Grading Criteria

Assignment Components

From Project Approval Input assignment   

Complete the Project Approval Input and answer the questions provided.

Excel Worksheet Requirements:

Identify the various revenues, expenses, costs, expenses, and cash flows. If a manufacturing company and investment deals with projects, the analysis breaks down costs into fixed and variable, direct and indirect.

Calculate the CVP or break-even point for the project.  

Calculate NPV and IRR. Provides the numeric viability of the project investment.

Slide Presentation Requirements:

Includes a minimum of 15 slides   

Cover page    

Company summary    

Data from Excel Worksheet   

Analysis slides     

Final recommendations     

Speaker notes on each slide