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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
As a manager, part of your role is to develop strategy, and share this strategy with various stakeholders within the organization. This assignment will allow you to take your findings as a manager and communicate these findings to those who are affected.
Your company has been presented with a decision on replacing a piece of equipment for a new computerized version that promotes efficiency for the upcoming year. As manager you will need to decide whether or not the purchase of the new equipment is a worthwhile investment and to communicate your recommendations to Executive Management for a final decision. To be convincing, sufficient support for your recommendations must be provided in order to be considered valid and accepted.
| Existing Equipment | |
| Original Cost | 60,000 |
| Present Book Value | 30,000 |
| Annual Cash Operating Costs | 145,000 |
| Current Market Value | 15,000 |
| Market Value in Ten Years | 0 |
| Remaining useful Life | 10 years |
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| Replacement Equipment | |
| Cost | 600,000 |
| Annual Cash Operating Costs | 50,000 |
| Market Value in Ten Years | 0 |
| Useful Life | 10 years |
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| Other Information | |
| Cost of Capital | 10% |
| Payback requirement | 6 years |
In this assignment, use the information above to develop a comprehensive analysis using NPV, Payback Method, and IRR to develop a recommendation on replacing the existing equipment with a new computerized version. Develop an executive summary of your findings in a Microsoft PowerPoint presentation format to present to Executive Management.
Do the following in your presentation:
Develop a 10-12 slide presentation in PowerPoint format. Apply APAÂ standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M4_A2.ppt.
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| Assignment 2 Grading Criteria |
Maximum Points
|
| Wrote a statement of the problem or topic, a concise analysis of the findings, and a recapitulation of any main conclusions or recommendations. |
28
|
| Explained the summary using specific details including calculations. |
28
|
| Explained how principles of capital budgeting, such as the payback method, IRR, and NPV, can be used to assess the potential projects and assist in the decision-making process displaying knowledge of capital budgeting techniques. |
36
|
| Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; and displayed accurate spelling, grammar, and punctuation. |
8
|
| Total: |
100
|
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