Calculating a payback period for 5 years based on the below and return on investment. Company initial investment 5.5 Million

 

2023 As is state:

Revenue: $1,896,000; Operating Expenses: $790,260.00

2024 Future State:

Revenue: $5,688,000; Operating Expenses: $2,702,670.00

some factors to consider:

Short-Term Objectives:

• Improve Operational Efficiency: Streamline processes, reduce bottlenecks, improve resource allocation, and execute quality control measures to decrease repair turnaround times by 20% within the next six months.
• Enhance Repair Service Capacity: Expand the facility with the addition of a new building, service bays, and staff to accommodate a 30% increase in repairs by the end of FY 2024.
• Optimize Cost-Effectiveness: Implement cost-saving measures, negotiate beneficial supplier contracts, and improve inventory management to achieve a 15% reduction in repair service costs by the end of FY 2024.

Long-Term Objectives:

• Increase Market Share: Strengthen the position in the market by capturing a larger share of the repair services, targeting a 25% increase in market share by the end of FY 2025.
• Improve Profitability: Increase net income through improved operational efficiency, expanded services, and cost optimization, aiming for a 15% increase in net income by the end of FY 2025.

 show calculations and graph?

Answer rating: 100% (QA)

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