Define the financial situation of the company has changed

Assignment Help Operation Management
Reference no: EM13732227

The financial situation of the company has changed substantially since we first analyzed the proposal;your manager wants you to make changes to the previous Excel spreadsheet. A more conservative analysis should include the following changes:

1. Assume that the engineer/supervisor who will be administering the system will have to devote 50% of his/her time the 1st year, 40% the 2nd year, 30% the 3rd year, and 20% the 4th and 5thyears of the analysis. Hint: It is customary in business to allocate to the project the portion of a resource's cost/salary in direct relationship to the % of time the resource devotes to it.

2. Assume that the anticipated sales increase will be only $200,000 the 1st year, $300,000 the 2nd year, and $400,000 the remaining 3 years of the study.

3. Assume the gross profit rate will only be 20% throughout the study.

4. If the resulting new Net Present Value (NPV) is negative, your manager wants you to renegotiate the initial cost of the software to an amount which will bring NPV to zero (0) for the project.

5. What should the new cost of the software be, if you want the NPV of the project to be Zero?

Reference no: EM13732227

Questions Cloud

Policies and procedures in managing human capital : This will help to develop policies and procedures in managing your human capital. Please develop a PowerPoint presentation to your Director addressing the following:
Describe the elements of human resource management : The case discusses human resources practices and policies in some detail. Describe the elements of human resource management applied to Jet Blue and analyze and how these practices impact the airline's service
Six basic management functions : Choose one of the six basic management functions: Planning, Organizing, Directing, Decision Making, Staffing or Controlling. Clearly describe why you chose this function and why you feel this particular function is essential to your effective manag..
Analysis of this case explaining who should win and why : Is the litigation paper and exhibits underlying an arbitration of an international trade dispute between a Turkish exporter and an American importer. Write two page analysis of this case explaining who should win and why
Define the financial situation of the company has changed : The financial situation of the company has changed substantially since we first analyzed the proposal;your manager wants you to make changes to the previous Excel spreadsheet. A more conservative analysis should include the following changes:
Discuss the phases of a project life cycle : Question 1: Please describe and discuss the phases of a Project's Life Cycle. Question 2: Explain the general functions of management and how these apply to a Project Manager's job
Assignment on the program management life cycle : The program management life cycle was developed to not only ensure successful realization of organizational/program strategies but also to create a process to plan, identify, and resolve specific cost, schedule, or quality problems associated with..
Research the apple corporation : Use the Internet to research the Apple Corporation, its current position and reputation regarding ethical and social responsibility, and the strategies that it currently employs to market its products.
Critique how the seven ps of the marketing mix is used : Most important:Critique how the seven Ps of the marketing mix is used by marketing specialists to achieve the organisational strategic goals

Reviews

Write a Review

Operation Management Questions & Answers

  What are the best arguments for car lots

Be sure to base your conclusions on your analysis taking into account the facts provided, reasonable assumptions and the relevant law (as opposed to listing your personal opinion).

  Explain the concept of order qualifier and order winners

Explain the concept of order qualifier and order winners. If you were a marketing manager why would you need to understand these concepts?

  The probability mass function should be written as a table

The probability mass function should be written as a table with the first column representing the possible values of the random variable and the second column representing the

  Explain how would they be able to continue to offer services

A key question for any agency that received government funding explain how would they be able to continue to offer services if government funding was reduced or taken away all together.

  Calculate average number of persons expected in system

To support National Heart Week, the Heart Association plans to install a free blood pressure testing booth in El Con Mall for the week.

  What source screening activities are available to a supply

What source screening activities are available to a supply manager for critical procurements? Describe each one.

  Illustrate what is percentage change in productivity

Using sales dollars as measure of output, illustrate what is percentage change in productivity from April to May.

  Answer the following questions in a 3- to 4-page microsoft

answer the following questions in a 3- to 4-page microsoft word documentwhat is the difference between the operations

  Identify five disadvantages of functional systems

Identify five reasons why you think the Lynx Company's functional system has been successful (be sure to expand your discussion on each reason).

  What are the implications of these factors for job security

Assess the impact of macro-environmental factors on the likely level of enrollment at your university over the next decade. What are the implications of these factors for the job security and salary level of your professors?

  Operation management an item is demanded at the rate of

an item is demanded at the rate of 2000 units per year at a uniform rate. order cost is rs.350 per order. inventory

  Write down some actions twelve trees can take with regards

the following case study is a compilation of facts and data based on a real or hypothetical business situation. the

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd