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TABLE OF CONTENTS
EXECUTIVE SUMMARY
The purpose of this report is to assess the performance of Stryker Corporation and recommend which company would be the better project valuation and capital expenditure proposal which is Option #3 over the coming period. The report calculates the ~~~~~~~~~~~ for in-sourcing Printed circuit boards (PCBs).
INTRODUCTION
When business operating, to maximize profit is most important. The composition revenue in business operating side is that business items, human resources and capital to invest. Also, good quality with reasonable price is made attractive to buyers. However, one of the first things in business operating to make higher revenue is minimizing cost. There is one company to face increasing operating cost with worse quality of goods. ANALYSIS
Option #3
Stryker Corporation (Stryker co.) is providing medical devices and medical equipment in market. Printed circuit boards (PCBs) is one of important components of their business. They spend more than $10 million and increasing amount of PCBs to grow their business. They used to out-sourcing the one of components that the PCBs from a number of small firms. However, these suppliers’ components are unsatisfied of quality and delivery. Therefore, Stryker Corporation comes up with options for high quality and fast delivery components. Option #3 is one of solving problems that Stryker co. operates in-sourcing the components.
Project valuation * Methodology
* Process
* Interpretation
* Discussion
* Analysis
CONLUSIONS AND RECOMMENDATIONS
The recommendation of option #3 is that it is better to build manufacture line for PCBs. There are several reasons for why the firm builds new line for it. Firstly, capital expenditure proposal consider as equity that it is expense for future profit. Thus, option #3 is investment in plant and equipment that effect