3. Given the receipt of a proposal or competitive proposals for a major contract, determine the...

3. Given the receipt of a proposal or competitive proposals for a major contract, determine the key factors used when negotiating an agreement or evaluating competitive proposals and establish a negotiating strategy for ECU.

Expert Solution

Rahul Sunny answered 2 years ago

Contract Manufacturing, Inc., is considering two alternative investment proposals. The first proposal calls for a major...

Contract Manufacturing, Inc., is considering two alternative investment proposals. The first proposal calls for a major renovation of the company’s manufacturing facility. The second involves replacing just a few obsolete pieces of equipment in the facility. The company will choose one project or the other but not both. The cash flows associated with each project appear below and the firm discounts project cash flow at 15%: Year: 0 ; 1 ; 2 ; 3 ; 4 ; 5 Renovate :...

Contact Manufacturing, Inc is considering two alternative investment proposals. The first proposal Calls for a major...

Contact Manufacturing, Inc is considering two alternative investment proposals. The first proposal Calls for a major renovation of the company's manufacturing facility. The second involves replacing just a few obsolete pieces of equipment in the facility. The company will choose one project or the other this year, but it will not do both. The cash flows associated with each project appear below and the firm discounts project cash flows at 15%. Year Renovate Replace 0 -9,000,000 -2,400,000 1 3,000,000 2,000,000...

Schultz Manufacturing is considering two alternative investment proposals with the following details: Proposal A Proposal B...

Schultz Manufacturing is considering two alternative investment proposals with the following details: Proposal A Proposal B Investment, today $550,000 $275,000 Useful life 5 years 4 years Estimated annual net cash inflows $150,000 $90,000 Residual value $50,000 $0 Depreciation method Straight-line Straight-line Discount rate 10% 9% You have been hired as a capital budgeting expert. You are to recommend to the senior management of Schultz the best investment option. What proposal do you recommend? You must support your answer. Please show...

Sammy Corporation is considering two alternative investment proposals with the following data: Proposal A Proposal B...

Sammy Corporation is considering two alternative investment proposals with the following data: Proposal A Proposal B Investment $850,000 $468,000 Useful life 8 years 8 years Estimated annual net cash inflows for 8 years $125,000 $78,000 Residual value $40,000 $ — Depreciation method Straight-line Straight-line Required rate of return 14% 10% Using EXCEL or a financial calculator, determine the internal rate of return for Proposal A? (Ignore taxes) Group of answer choices 2.79% 2.88% 4.57% 14.71%

Jameson Manufacturing is considering two alternative investment proposals with the following details: Proposal A Proposal B...

Jameson Manufacturing is considering two alternative investment proposals with the following details: Proposal A Proposal B Investment, today $550,000 $275,000 Useful life 5 years 4 years Estimated annual net cash inflows $150,000 $90,000 Residual value $50,000 $0 Depreciation method Straight-line Straight-line Discount rate 10% 9% You have been hired as a capital budgeting expert. You are to recommend to the senior management of Jameson the best investment option. What proposal do you recommend? You must support your answer. Jameson has...

Discuss your prior knowledge of proposals. (Remember: the goal of a proposal is to inspire change,...

Discuss your prior knowledge of proposals. (Remember: the goal of a proposal is to inspire change, to solve a problem, or address an issue). Answer: Have you ever had to write one? Answer: Do you read them in your profession? Note: If you have never written or read a proposal, locate one online and discuss the merits/drawbacks based on what you have learned.

Given a diagram for a competitive firm, price or marginal revenue, be able to determine the...

Given a diagram for a competitive firm, price or marginal revenue, be able to determine the profit maximizing quantity. Given the profit maximizing quantity, ATC and AVC, be able to determine how much the firm would lose if they were to produce versus shut-down. Lastly, state whether the firm should produce or shut down.

Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: Proposal A ...

Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: Proposal A Proposal B Proposal C Initial investment…………………………….................$60,000 $60,000 $60,000 Cash flow from operations Year 1………………………………...............................50,000 30,000 60,000 Year 2………………………………................................6,000 30,000 Year 3………………………………...............................29,000 25,000 Disinvestment………………………………......................0 0 0 Life (years)………………………………….....................3 years 3 years 1 year Required Rank these investment proposals using the payback period, the accounting rate of return on initial investment, and the present value criteria. Assume that the organization’s cost of capital is 12 percent....

3- In a perfectly competitive market the demand and supply functions for a product is given...

3- In a perfectly competitive market the demand and supply functions for a product is given by ?? = 200 − 4? ?? = −100 + 6? Now suppose that the government taxes the good by a unit tax of 5TL. a) Find the price that demanders pay and the price that suppliers receive when buyers are responsible to pay for the tax. Find the total tax collection and the deadweight loss from this taxation policy. Show your analysis explicitly...

Cummins Engines, Inc. is considering two alternative investment proposals. The first proposal calls for investment in...

Cummins Engines, Inc. is considering two alternative investment proposals. The first proposal calls for investment in plant and equipment to produce a new alternative fuel engine. The second proposal calls for investment in plant and equipment to expand production of a current, successful diesel engine. Cummins will choose only of these project since they are for similar markets. Year New Line Expand Line 0 ($65,000,000) ($20,000,000) 1 $20,000,000 $11,000,000 2 $20,000,000 $10,000,000 3 $20,000,000 $8,000,000 4 $20,000,000 $0 5 $20,000,000...

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