Prepare either a 3-4 page report or a 12-slide presentation in which you analyze financial information and risksassociated with an investment to expand an organization and make a recommendation on whether or not toinvest in expansion.IntroductionThis portfolio work project will allow you to review information and risks associated with an investment toexpand an organization. As this information will be shared broadly across the organization, you will have achoice in your final deliverable audience and will organize your deliverable to meet the needs of that audience.ScenarioZXY Company is a food product company. ZXY is considering expanding to two new products and a secondproduction facility. The food products are staples with steady demands. The proposed expansion will require aninvestment of $7,000,000 for equipment with an assumed ten-year life, after which all equipment and otherassets can be sold for an estimated $1,000,000. They will be renting the facility. ZXY requires a 12 percentreturn on investments. You have been asked to recommend whether or not to make the investment.
You are an accounting manager. Your boss has asked you to review and provide a recommendation on theexpansion based on information that has been provided.RequirementsIn preparing and supporting your recommendation to either make the investment or not, include the followingitems as part of your analysis:Analysis of financial information.Identification of risks associated with the investment. Consider:How risky the project appears.How far off your estimates of revenues and expenses can be before your decision would change.The difference if the company were to use a straight line versus a MACRS depreciation.Recommendation for a course of action.Explanation of criteria supporting your recommendation.Financial InformationAs part of your analysis you might find that additional information from marketing, accounting, or finance wouldbe useful in making an informed and well-supported recommendation. In a real workplace setting you wouldhave the ability to ask for that information. However, for the purposes of this assessment, you can makeassumptions about the values of that data or ratios in support of your recommendation.Accounting worked with the marketing group to create the ZXY Company Financial Statements spreadsheet forthe new products business and the new facility
Sample Solution
The post Expansion recommendation appeared first on homework handlers.
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”
The post Expansion recommendation first appeared on Homework Handlers.
