Deliverable 3 – ranking capital investment projects

Competency
Interpret financial decision-making criteria.

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 an operations manager for New Foods Company. The company manufactures organic versions of common food items, such as cookies and bread. New Foods has built a reputation for good taste and quality in its products and has developed partnerships with several health food retailers. An opportunity exists to expand into a traditional grocery store chain with a new partnership. This opportunity will require increased production. However, your firm has not previously sold its products in this channel and uncertainty exists about the volume of new product sales that may result.

The executive leadership team of New Foods Company wants to grow the firm and it has been working with the local government on potential tax credits for creating new jobs in the area. The leadership team has also identified a commercial bank that will provide loans for any plant and equipment purchases. An overarching goal of the leadership team is to maintain product quality and the brand’s reputation.

Three options for increasing production have been identified.

  • The first option is to purchase and refurbish a manufacturing plant location in a nearby town that has been closed for several years. Equipment to operate this plant would also have to be acquired. The location is large enough to build production for the expected volume and have excess space to accommodate growth of 200% in the future. This refurbished location could be operational in 12 months.
  • The second option is to lease capacity from another food manufacturing firm that does not make its own branded products but operates as a co-manufacturer for others. This firm currently has enough available capacity for the expected volume, but not to increase above that level. This production process could be operational in 3 months.
  • The third option is to expand your existing plant location by purchasing adjacent land and constructing a new building. Equipment to operate this expansion would also have to be acquired. The land is large enough to build production for the expected volume and have excess space to accommodate growth of 50% in the future. This new location could be operational in 18 months.
  • Instructions
    Using the financial data provided in the Excel file, calculate a net present value, internal rate of return, and payback period for each option.

    Prepare a PowerPoint presentation that summarizes the calculated results from the financial analysis and provides the key operational and strategic points for each option. One slide must be a ranked list of the three project options. Include a justification of which financial metrics and non-financial data were prioritized for ranking the three options.

    Submit the Excel file with the completed calculations and the PowerPoint presentation.

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