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Case 2 Plan 1

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Case 2 Plan 1
Group 3
Case 2
Piedmont Trailer Manufacturing Company
Plan

Tasks
In charge
1. Prepare team plan

A. Read case

B. Write plan

C. Find and post YouTube videos associated with the Excel case
Dewey
2. Answer questions within the text of the case

A. Create a workbook with at least 5 different worksheets: Documentation, One-Time Cost, Recurring Cost, Tangible Benefit, and Economic Feasibility Summary.

B. After creating the five different worksheets, re-name them to match the chart name that is on that worksheet.

C. Calculate the totals for the following three worksheets: One-Time Cost, Recurring Cost, and Tangible Benefits.
D. Create the Economic Feasibility Summary worksheet, referencing specific cells from the other worksheets.
E. In the Economic Feasibility Summary, discount the recurring benefits and costs to their present values. Since each year requires a different present value factor, compute the present value for each year using the formula given on page 10.
Andy, Tessa
3. Answer Information specification questions.

A. How will discount rates of 8, 10, 12, 14, and 16 percent affect the project’s feasibility? (Question 1)

B. Reset the discount rate to 14 percent. Prepare a breakeven chart that compares the net present value of all the benefits to the net present value of all costs. (Question 2)

C. If management stipulates that the internal rate of return must be equal to or greater than the discount rate, is this project still justifiable? (Question 3)

D. Assuming the discount rate is 14 percent, how will eliminating an additional staff position of $32,000 affect the economic feasibility assessment? (Question 4)

E. Assume that the staff position mentioned in Step 3 is eliminated, the site preparation cost increases to $120,000, and the discount rate is 14 percent. What impact will these changes have on the project’s feasibility? (Question 5)
F. Assume that management has enough money to fund two development projects. After you determine this

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