Introduction of A New Food Product
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
Introduction of A New Food Product
Fairway Manufacturing is considering the introduction of a new food product. A market study was completed to gather customer feedback. The cost of the study was $125,000. The new product is expected to last 5 years and then, because this is somewhat of a fad product, be terminated. The new product will compete against an existing product. This will result in the annual loss of operating cash flows from the existing product of $100,000. The company evaluates projects using a 20% required rate of return (cost of capital). The following information describes the new project.
The cost of the new equipment will be $15,850,000. Shipping and installation costs of the equipment will be $300,000. The equipment is considered to be 7-Year MACRS Property.
The units to be sold in year 1 are expected to be 100,400 with an expected 4.5% growth in unit sales each year. The unit selling price in year 1 is expected to be $395.
The manufacturing cost per unit in year 1 is expected to be $282. The unit selling price will decrease each year by 1.5% due to strong competition; however, the manufacturing cost per unit is expected to increase 3.2% each year due to inflation and demand for raw materials. Annual selling and administrative expenses are expected to be $2,850,000 per year. The company’s income tax rate is 21%.
Working Capital Requirements: There will be an initial net working capital requirement of $450,000 just to get production started. The total net working capital buildup will be liquidated by 85% at the termination of the project at the end of year 5.
Depreciation Expense: The VLOOKUP function must be used in the calculation of depreciation expense.
Sale of Equipment: The equipment is expected to be sold for $4,350,000 at the end of five years.
Formulas and Functions: All calculations must use formulas and/or functions. Cell references must be used in all formulas and functions, except for the number one in the growth formula, the column number in the VLOOKUP function, and the numbers zero and one in the IF function.
Instructions:
Calculate the incremental cash flows for years 0-5.
Calculate the NPV (display at 2 decimals).
Calculate the PI (display at 2 decimals).
Calculate the IRR (display at 2 decimals).
Calculate the MIRR (display at 2 decimals).
Calculate the Standard Payback (display at 2 decimals).
Using the IF function, indicate whether the project is acceptable under each of the five methods (the function should return either Accept or Reject). The standard payback cutoff period is three years.
Other requirements:
Formulas must be used for all calculations. Formulas should use cell references, as appropriate.
All numbers must be properly right-aligned. Do not use a dollar sign ($) for every dollar amount.
An input area with the percentages and other assumptions must be provided so that what-if scenarios may be performed.
Your spreadsheet must be prepared in a professional manner with an appropriate heading: use bolding, indenting and spacing, spell check, consistent number formats, etc.
Introduction of A New Food Product
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
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