Problem Statement: Consider yourself working as Team Lead, Product Design Department in a company with annual taxable income of $10,000,000 from existing operations. Your team has come up with a new product. The planning horizon of the product is 5 years. MARR of the company is 15%. Develop project feasibility plan to be presented to the PD Product Design Department. The following detail/calculation is needed: a. A new building is needed to manufacture the product b. At least two different types of machines are needed, one being 5-year MACRS property and the other being a 7-year MACRS property C. Raw materials, labor charges (per hour or per unit), direct overheads d. Working capital requirement to account for Cash in hand, Accounts receivable, accounts payable, and inventory. These values vary with the sales volume!!! Which means working capital requirement will also change yearly. e. Operating costs related to marketing, sales, insurance, and other salaries etc. f. Capital assets including the building will be disposed of at the end of project (5 years) g. 50% of capital investment will be financed at 10% return from a local bank with a 5 year repayment plan. 50% of the investment will be financed by the company itself (equity). h. Ignore other equity detail in balance sheet; e.g. common shares, retained earnings etc. Any other item needed may be assumed logically; e.g. Sales volume which increases yearly in a systematic way. (Refer to the last question of final exam part-2) j. The term project report will also include income statement, balance sheet, and cash flow statement for all five years, updated yearly based on income statement. (Go through examples in Chapter-2 and 10), especially Table-2.1, 2.2, 2,3, 2.4 Example 2.1. k Calculate NPW of the project 1. Go through the video session held to discuss the term project. Any queries can be emailed to the instructor. i. Problem Statement: Consider yourself working as Team Lead, Product Design Department in a company with annual taxable income of $10,000,000 from existing operations. Your team has come up with a new product. The planning horizon of the product is 5 years. MARR of the company is 15%. Develop project feasibility plan to be presented to the PD Product Design Department. The following detail/calculation is needed: a. A new building is needed to manufacture the product b. At least two different types of machines are needed, one being 5-year MACRS property and the other being a 7-year MACRS property C. Raw materials, labor charges (per hour or per unit), direct overheads d. Working capital requirement to account for Cash in hand, Accounts receivable, accounts payable, and inventory. These values vary with the sales volume!!! Which means working capital requirement will also change yearly. e. Operating costs related to marketing, sales, insurance, and other salaries etc. f. Capital assets including the building will be disposed of at the end of project (5 years) g. 50% of capital investment will be financed at 10% return from a local bank with a 5 year repayment plan. 50% of the investment will be financed by the company itself (equity). h. Ignore other equity detail in balance sheet; e.g. common shares, retained earnings etc. Any other item needed may be assumed logically; e.g. Sales volume which increases yearly in a systematic way. (Refer to the last question of final exam part-2) j. The term project report will also include income statement, balance sheet, and cash flow statement for all five years, updated yearly based on income statement. (Go through examples in Chapter-2 and 10), especially Table-2.1, 2.2, 2,3, 2.4 Example 2.1. k Calculate NPW of the project 1. Go through the video session held to discuss the term project. Any queries can be emailed to the instructor. i. Problem Statement: Consider yourself working as Team Lead, Product Design Department in a company with annual taxable income of $10,000,000 from existing operations. Your team has come up with a new product. The planning horizon of the product is 5 years. MARR of the company is 15%. Develop project feasibility plan to be presented to the PD Product Design Department. The following detail/calculation is needed: a. A new building is needed to manufacture the product b. At least two different types of machines are needed, one being 5-year MACRS property and the other being a 7-year MACRS property C. Raw materials, labor charges (per hour or per unit), direct overheads d. Working capital requirement to account for Cash in hand, Accounts receivable, accounts payable, and inventory. These values vary with the sales volume!!! Which means working capital requirement will also change yearly. e. Operating costs related to marketing, sales, insurance, and other salaries etc. f. Capital assets including the building will be disposed of at the end of project (5 years) g. 50% of capital investment will be financed at 10% return from a local bank with a 5 year repayment plan. 50% of the investment will be financed by the company itself (equity). h. Ignore other equity detail in balance sheet; e.g. common shares, retained earnings etc. Any other item needed may be assumed logically; e.g. Sales volume which increases yearly in a systematic way. (Refer to the last question of final exam part-2) j. The term project report will also include income statement, balance sheet, and cash flow statement for all five years, updated yearly based on income statement. (Go through examples in Chapter-2 and 10), especially Table-2.1, 2.2, 2,3, 2.4 Example 2.1. k Calculate NPW of the project 1. Go through the video session held to discuss the term project. Any queries can be emailed to the instructor. i. Problem Statement: Consider yourself working as Team Lead, Product Design Department in a company with annual taxable income of $10,000,000 from existing operations. Your team has come up with a new product. The planning horizon of the product is 5 years. MARR of the company is 15%. Develop project feasibility plan to be presented to the PD Product Design Department. The following detail/calculation is needed: a. A new building is needed to manufacture the product b. At least two different types of machines are needed, one being 5-year MACRS property and the other being a 7-year MACRS property C. Raw materials, labor charges (per hour or per unit), direct overheads d. Working capital requirement to account for Cash in hand, Accounts receivable, accounts payable, and inventory. These values vary with the sales volume!!! Which means working capital requirement will also change yearly. e. Operating costs related to marketing, sales, insurance, and other salaries etc. f. Capital assets including the building will be disposed of at the end of project (5 years) g. 50% of capital investment will be financed at 10% return from a local bank with a 5 year repayment plan. 50% of the investment will be financed by the company itself (equity). h. Ignore other equity detail in balance sheet; e.g. common shares, retained earnings etc. Any other item needed may be assumed logically; e.g. Sales volume which increases yearly in a systematic way. (Refer to the last question of final exam part-2) j. The term project report will also include income statement, balance sheet, and cash flow statement for all five years, updated yearly based on income statement. (Go through examples in Chapter-2 and 10), especially Table-2.1, 2.2, 2,3, 2.4 Example 2.1. k Calculate NPW of the project 1. Go through the video session held to discuss the term project. Any queries can be emailed to the instructor. i. Problem Statement: Consider yourself working as Team Lead, Product Design Department in a company with annual taxable income of $10,000,000 from existing operations. Your team has come up with a new product. The planning horizon of the product is 5 years. MARR of the company is 15%. Develop project feasibility plan to be presented to the PD Product Design Department. The following detail/calculation is needed: a. A new building is needed to manufacture the product b. At least two different types of machines are needed, one being 5-year MACRS property and the other being a 7-year MACRS property C. Raw materials, labor charges (per hour or per unit), direct overheads d. Working capital requirement to account for Cash in hand, Accounts receivable, accounts payable, and inventory. These values vary with the sales volume!!! Which means working capital requirement will also change yearly. e. Operating costs related to marketing, sales, insurance, and other salaries etc. f. Capital assets including the building will be disposed of at the end of project (5 years) g. 50% of capital investment will be financed at 10% return from a local bank with a 5 year repayment plan. 50% of the investment will be financed by the company itself (equity). h. Ignore other equity detail in balance sheet; e.g. common shares, retained earnings etc. Any other item needed may be assumed logically; e.g. Sales volume which increases yearly in a systematic way. (Refer to the last question of final exam part-2) j. The term project report will also include income statement, balance sheet, and cash flow statement for all five years, updated yearly based on income statement. (Go through examples in Chapter-2 and 10), especially Table-2.1, 2.2, 2,3, 2.4 Example 2.1. k Calculate NPW of the project 1. Go through the video session held to discuss the term project. Any queries can be emailed to the instructor. i. Problem Statement: Consider yourself working as Team Lead, Product Design Department in a company with annual taxable income of $10,000,000 from existing operations. Your team has come up with a new product. The planning horizon of the product is 5 years. MARR of the company is 15%. Develop project feasibility plan to be presented to the PD Product Design Department. The following detail/calculation is needed: a. A new building is needed to manufacture the product b. At least two different types of machines are needed, one being 5-year MACRS property and the other being a 7-year MACRS property C. Raw materials, labor charges (per hour or per unit), direct overheads d. Working capital requirement to account for Cash in hand, Accounts receivable, accounts payable, and inventory. These values vary with the sales volume!!! Which means working capital requirement will also change yearly. e. Operating costs related to marketing, sales, insurance, and other salaries etc. f. Capital assets including the building will be disposed of at the end of project (5 years) g. 50% of capital investment will be financed at 10% return from a local bank with a 5 year repayment plan. 50% of the investment will be financed by the company itself (equity). h. Ignore other equity detail in balance sheet; e.g. common shares, retained earnings etc. Any other item needed may be assumed logically; e.g. Sales volume which increases yearly in a systematic way. (Refer to the last question of final exam part-2) j. The term project report will also include income statement, balance sheet, and cash flow statement for all five years, updated yearly based on income statement. (Go through examples in Chapter-2 and 10), especially Table-2.1, 2.2, 2,3, 2.4 Example 2.1. k Calculate NPW of the project 1. Go through the video session held to discuss the term project. Any queries can be emailed to the instructor