MGMT 640
GROUP PROJECT Help, Group Project Writing, Management Group Project
It is a group project so you will need to coordinate with various members of your group on how to progress with the project. Often students are reluctant to work in groups, but as you have experienced in the workplace, working in a group will not be an option. You will learn together and find out more about flexibility and sharing of responsibilities with the project. All team members should contribute to the financial analysis tasks. A timeline for completion of these tasks should be determined by the team. The completed PowerPoint presentation should be cohesive and professional in appearance. You may decide to split the Executive Summary and PowerPoint presentations between all members, or you may decide to have 2 students focus on the Executive Summary Word document and content for the associated PowerPoint slide while the rest of the team members focus on the PowerPoint presentation. The decision should be based on what works best for your team. Also determine a timeline for this portion of the assignment. Consider how editing will be done within your team. Use the grading rubric to help guide your work!
- Net Present Value: The Lees are considering adding a new piece of equipment that will speed up the process of building the bobble heads. The cost of the piece of equipment is $42000. It is expected that the new piece of equipment will lead to cash flows of $17000, $29000, and $40000 over the next 3 years. If the appropriate discount rate is 12%, what is the NPV of this investment? Explain the findings.
- Budget Preparation: The Lees believe that production and sales could double after being on Shark Tank which is scheduled in December of 20XY. They want to be prepared for this. Based on the budgeted income statement calculated above for 20XY, create a new budgeted income for 20XZ assuming that the production and sales is double the level of 20XY.
- Incremental Analysis: If production does increase dramatically after their presentation on Shark Tank, the Lees will need more space for production. They have two options. Option 1 is to rent out a spacious warehouse nearby. If they pursue this option, there rent will be $1200 per month and utilities are estimated to cost an additional $350 per month. Their second option, Option 2, is to rent a smaller storefront space that is also nearby. The storefront rent is $1350 per month. However, utilities will likely only cost an additional $150 per month. They want to compare their options over one year’s time (since each rental contract is a 1 year commitment). What is the incremental analysis if the Lees choose Option 1 over Option 2?
- Break-Even Analysis: You have been asked to calculate how many units need to be sold to break even, based on the costs provided in task #3. Assume that only one conference will be attended and the estimated expenses associated with this conference are on target. Use the information in task #3 except do not consider taxes.)
- Contribution Margin: Based on the Break-Even Analysis just performed, what is the contribution margin per unit and the total contribution margin?
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