Galaxy Science Centre (Gsc)
Executive summary
Capital Budgeting encourages managers to accurately manage and control their capital expenditure. By providing powerful reporting and analysis, managers can take control of their budgets.
The purpose of this paper is to investigate capital budgeting decision under Galaxy Science Centre (GSC), which is non-profit organization. The need for such an analysis emerges from the case that only provides general information concerning the impact of capital budgeting decisions in the presence of strategic interactions among GSC. We are facing significant problems in different conditions, then through all given figures to make the best recommendations fro GSC.
Five issues will be told in this report. The first issue identifies which types of capital expenditure projects will be selected to achieve GSCЎ¦s objective, and the performance result. Second, to obtain a computer system, GSC can be either financed by bank loan or leased from Computer Company. Third, use the probability technique to calculate the budgeted admission price for the first year. The forth issue, concerns with how GSC can breakeven without support from the government. The last issue considers overall elements to set up a price policy for the gift shop. We attempt to figure out these issues as existing puzzle.
Issue 1
Galaxy Science Centre (GSC) is a non-profit organization, every dime it spends should be used according to their goal. The goal of GSC is to educate the general public, to support the science programs of local schools and to provide a science centre for the municipality. Therefore, the most amount of budget should be allocated to the Public relation department. The Public relation department is responsible to educate the general public about science and facilitate the school to hold the science program. The individual project includes organizing some road show and seminar in order to draw peopleЎ¦s attention about the importance of science. Moreover, we must make
Capital Budgeting encourages managers to accurately manage and control their capital expenditure. By providing powerful reporting and analysis, managers can take control of their budgets.
The purpose of this paper is to investigate capital budgeting decision under Galaxy Science Centre (GSC), which is non-profit organization. The need for such an analysis emerges from the case that only provides general information concerning the impact of capital budgeting decisions in the presence of strategic interactions among GSC. We are facing significant problems in different conditions, then through all given figures to make the best recommendations fro GSC.
Five issues will be told in this report. The first issue identifies which types of capital expenditure projects will be selected to achieve GSCЎ¦s objective, and the performance result. Second, to obtain a computer system, GSC can be either financed by bank loan or leased from Computer Company. Third, use the probability technique to calculate the budgeted admission price for the first year. The forth issue, concerns with how GSC can breakeven without support from the government. The last issue considers overall elements to set up a price policy for the gift shop. We attempt to figure out these issues as existing puzzle.
Issue 1
Galaxy Science Centre (GSC) is a non-profit organization, every dime it spends should be used according to their goal. The goal of GSC is to educate the general public, to support the science programs of local schools and to provide a science centre for the municipality. Therefore, the most amount of budget should be allocated to the Public relation department. The Public relation department is responsible to educate the general public about science and facilitate the school to hold the science program. The individual project includes organizing some road show and seminar in order to draw peopleЎ¦s attention about the importance of science. Moreover, we must make