STEPS IN THE CAPITAL RATIONING PROCESS

Step 1:  Identify potential capital investment projects.

Step 2:  Establish a minimum average rate of return and/or a maximum desired cash payback period to screen the projects. Eliminate any project that fails to meet these standards, unless the project has overriding qualitative benefits.

Step 3:  Evaluate the remaining projects, using net present value and/or internal rate of return techniques.

Step 4:  Consider the qualitative benefits of each project.

Step 5:  Rank the projects, based on the results of Steps 3 and 4.

Step 6:  Allocate available funds, beginning with the top-ranked project.

Handout 25(11)-1

Capital Rationing

Plasticon manufactures plastic containers used to package a variety of liquid consumer products (such as fabric softener, cleaners, shampoo, hair spray, and liquid soap). The containers are manufactured on a job-order basis to customer specifications.

Plasticon has received five proposals for capital investment projects. Your job is to evaluate these proposals and rank them in the order in which they should be funded. Begin your analysis by computing the average rate of return and cash payback period for each proposal. Any project that has an average rate of return of less than 15% or a cash payback period of longer than five years should be eliminated from further consideration. After this initial screening, compute the net present value (using a 15% discount rate) and internal rate of return for the remaining projects. Rank the projects based on both their profitability and overall merit to the corporation (qualitative factors).

                                                Project A       Project B      Project C       Project D      Project E

Cost                                          $200,000       $250,000      $325,000       $500,000       $400,000

Expected useful life                     8 years        10 years       10 years        10 years          8 years

Residual value                                    $0                  $0                 $0                  $0                  $0

Annual project income               $17,000         $18,000        $33,000         $55,000         $45,000

Annual net cash inflow               $42,000         $43,000        $65,500       $105,000         $95,000

Project A: This proposal requests funds to purchase hardware and software that will allow the Accounting Department to process payroll in-house. Paychecks are currently processed by an outside payroll service company. The annual increase in net income and cash flows will result from cost savings if the payroll function is no longer contracted to an outside company.

Project B: This proposal requests funds for new manufacturing equipment. This equipment will allow Plasticon to make containers as large as ten gallons. Currently, Plasticon can not make containers that are larger than three gallons.

Project C: This proposal requests funds for equipment to make stick-on labels that are applied to the plastic containers. Currently, all stick-on labels are ordered from another company. This supplier has not proven very reliable in meeting delivery deadlines.

Project D: This proposal requests funds for automated manufacturing equipment that will reduce the cycle time from receipt of a customer order to delivery of that order. Plasticon’s cycle time is currently seven days. The automated equipment will reduce that time to four days while saving costs due to the elimination of five jobs. It will also make Plasticon more competitive; the company’s major competitor currently has a cycle time of five days.

Project E: This proposal requests funds for computerized drafting and design equipment that will allow engineers to complete manufacturing instructions on special orders more quickly. This equipment should reduce Plasticon’s cycle time from seven to five days.

                  Present Value of an Annuity of $1 at Compound Interest           

Period        12%         13%           14%           15%         16%         17%      18%

                 8          4.968       4.799         4.639         4.487       4.344       4.207    4.078

               10          5.650       5.426         5.216         5.019       4.833       4.659    4.494

please use excel to complete.

Photon Technologies, Inc., a manufacturer of batteries for mobile phones, signed a contract with a large electronics manufacturer to produce three models of lithium-ion battery packs for a new line of phones. The contract calls for the following:

Photon Technologies can manufacture the battery packs at manufacturing plants located in the Philippines and Mexico. The unit cost of the battery packs differs at the two plants because of differences in production equipment and wage rates. The unit costs for each battery pack at each manufacturing plant are as follows:

The PT-100 and PT-200 battery packs are produced using similar production equipment available at both plants. However, each plant has a limited capacity for the total number of PT-100 and PT-200 battery packs produced. The combined PT-100 and PT-200 production capacities are 175,000 units at the Philippines plant and 160,000 units at the Mexico plant. The PT-300 production capacities are 75,000 units at the Philippines plant and 100,000 units at the Mexico plant. The cost of shipping from the Philippines plant is $0.21 per unit, and the cost of shipping from the Mexico plant is $0.18 per unit.

Essay Topic: Impact of Coronavirus

Please discuss the recent pandemic COVID-19, aka the coronavirus. First give intel on the whole pandemic, explaining the root of the virus and how it got its way into the US, based on the updated news. Then talk about the various factors of the pandemic including the effects of it nationwide, especially the United States. Then organize the concerns into categories of food, economy, politics, race, and inequality. Explain each topic under the current pandemic.

• Please make sure to use citations and references for the essay

• Please use APA 6th format if possible

discuss with the correlation of training and testing in terms of BC/DR plan. 3 paragraphs max

What strategies did McDonald's and Popeyes use to manage their products?

Walker Memorial Hospital (WMH) and the St. Lucas Hospital are both located in Mason County and offer varied services. St. Lucas Hospital, however, happens to be a smaller, indigent facility that has various offsite services. St. Lucas often refers patients to Walker Memorial Hospital for more complex, specialized services. St. Lucas Hospital accepts walk-ins without prior scheduling and so is able to provide general services to many patients without extra charges. Walker Memorial Hospital requires scheduling before obtaining any medical care and a missed appointment attracts a fee during the next appointment.

St. Lucas Hospital requires financial support from the community to remain effective as most patients are unable to pay for services. In this much more difficult financial environment, that support is no longer available. WMH has offered to buy St. Lucas, but will apply its financial policies and change the administrative processes to meet its own, including closing all unscheduled, walk-in care. The sale is approved and WMH buys St. Lucas and both hospitals are now in the process of migrating their Patient Record Systems from paper to electronic.

Using the Case study above, conduct a SWOT analysis.

Business is becoming more and more competitive, and organisations have realised that purchasing and Supply Chain Management (SCM) are key factors in satisfying customers. Buyers and supply chain managers can contribute significantly to the organisation's profits. An organisation can spend as much as 50% of its sales revenue on purchasing parts, services, components and raw material. Therefore, efficient, mutually beneficial and constructive relationships with suppliers are very important to the organisation's short-term financial position and long-term competitive power.
1. The activities and objectives of different organisational buyers will dictate their purchasing needs and behavioural patterns with regard to purchases. Discuss the three types of organisational buyers. (10)
2. List and explain TEN criteria used to evaluate suppliers. (20)
3. Four critical factors have been identified for the successful implementation of a software-solution-driven SRM solution. Discuss these factors. (10)
4. Differentiate between constructive and competitive negotiation. (10)
5. Discuss the guidelines for maintaining positive supplier and customer relationships. (10)
Project Guidelines
 Your project should include a table of contents
 Text: Font: Arial or New Times Roman (12), spacing 1.5 lines
 All text must be justified at each margin
 The length of your answers to each question should be in line with mark allocations
 Your answers must include any theories, charts, tables or exhibits necessary to support your analysis and recommendations.
 Ensure that the readings are not merely reproduced in the project without original critical comments and views.
 References- At least 5 academic sources of reference must be used. (These include textbooks, journal articles and internet sources that are relevant to your field of study. Academic sources do not include Wikipedia and blogs). The MANCOSA study guide must not be used as a source of reference. You must include Reference list at the end of your project. Information quoted/paraphrased from sources listed in your Reference list must be referenced in-text. The Harvard system of referencing must be used.
 It is imperative that students proof read and edit their projects prior to submitting them. Projects must be free from errors and of a professional standard.

What life skills can a person draw upon to be a better manager? What management skills can a person draw upon to better deal with life’s problems and opportunities?

Please don't hand write thank you.

Describe ways in which turnover in an organization can be bad, and ways in which it can be good.

Read the following set of facts and answer the questions posed: Referred to as the “Google Mistrial,” a federal judge in Florida declared a mistrial after a juror told that judge that he had been doing research on the Internet on the drug trial in which he was serving. When the judge declared the mistrial, eight other jurors confessed that they had been doing the same thing. Judges have long warned jurors about using outside sources, including the Internet, but BlackBerries and iPhones have proven to be mighty tempting for jurors. Some jurors are using Facebook to announce when verdicts are coming. One juror even looked up evidence that had been excluded by the judge in the case. When asked why he violated the judge’s order, the juror said simply, “Well, I was curious.” Another juror contacted the defendant through Facebook, and another mistrial resulted. A judge in Arkansas is reviewing a request for a reversal of a $12.6 million jury verdict against a company from one of the company’s lawyers based on the court’s discovery that one of the jurors was using. Twitter to send out postings about how the trial was proceeding. An excerpt from the posting follows: “Oh, and nobody buy Stoam. It’s bad mojo and they’ll probably cease to Exist now that their wallet is $12m lighter … So, Jonathan, what did you do today? Oh nothing really, I just gave away TWELVE MILLION DOLLARS of somebody else’s money.” What is the problem with jurors using these electronic tools during their cases? When answering the post, it would be helpful to define what is a jury and what is the purpose of a jury in a court proceeding.

discuss the role of information systems on improving logistics supply chain performances

Abelina has been struggling to gain approval from her new boss, Ms Aldo, who has very high standards about even the most tiny aspects. It's a welcome change when she calls her into hes office to praise her for her work that week. Unfortunately, Abelina soon understands that Ms Aldo appreciation is mainly for the new streamlined format for reports that her assistant Joanie designed. What do you think Abelina should do in this situation?♣ Departing from the analysis of the case study above, and after reflecting on the activity of UNIT 1 on Values, please discuss: What does integrity mean to you? Do you think that work integrity is different or has different characteristics from integrity in general? What do you think should Mandatory approach to the exercise: Critical thinking is expected from the answers. Critical thinking refers to the ability to analyse information objectively and make a reasoned judgment. Critical thinking involves the evaluation of sources such as data, facts, observable phenomenon, and research findings. Good critical thinkers can draw reasonable conclusions from a set of information and discriminate between useful and less useful details to solve a problem or make a decision.