Posted on by Judy

The Following Scenario Contains All The Information You Need To Answer The Quest

Please see attached files and answer associated questions.

Attachment 1
Attachment 2
Attachment 3

The following scenario contains all the information you need to answer the questions— use what’s here, do not include additional analysis from the case or elsewhere tocomplete your answers. Your company has $10,000,000 in “excess cash” — more than you need to provide acushion on your balance sheet to protect against risk. Jane, your crack financialanalyst, has prepared a set of options for you to consider. They are: A) Keep the $10,000,000 on the balance sheet and earn a 3.0% after—tax return fromthe bank for the next 15 years. B) One of your bondholders has offered to sell you back $10,000,000 of youroutstanding 12% notes, which would enable you to forego this year’s interestpayments plus the next 15 years, at which point the bond will mature. Assume a taxrate of 35%. 0) Expand your plant by 165,000 units per shift; Jane says that you can expect an$11 after—tax contribution margin per unit and that you can run this new portion of theplant for 2 shifts for the next 15 years, at which point the equipment will need to bescrapped. D) Spend the $10,000,000 this year and another $10,000,000 next year on inventingthe CPRA product. Jane says you will yield zero incremental after-tax contributionmargin the following year, but $2.5m the year after that, $5m the year after that, and$10m per year thereafter until year 15, at which point Jane says it’s reasonable toassume that the CPRA product will have been supplanted by other technologies. Jane has prepared a worksheet where she has laid out for you the cash flowsassociated with these decisions from the shareholders’ oersoeofive.
 
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”

What Students Are Saying About Us

.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐
"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"

.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."

"Order a Custom Paper on Similar Assignment! No Plagiarism! Enjoy 20% Discount"

Related posts:

  1. We saw that risk management involves playing the devil’s advocate and asking, “What could go wrong?” Creating a scenario and thinking through situations will help you understand the nature of the risk better. Create 3 fictional incidents for the risk area – Long term care Write about each scenario including the following information about each scenario: 1.) Details of the incident – what, where, when and who? 2.) Explain the cause – how and why? Include an introduction and conclusion
  2. Subject Security Architecture Design In Approximately 500 Words Answer The Quest
  3. Case Study:- The Fitzgerald Machine Company is a $25MM per year custom metal fabrication shop. It has a work force of 30 machinists and 15 office personnel. Don Bradish was hired from Peptine Corporation three months ago as Fitzgerald’s production scheduler. His background includes an undergraduate industrial engineering degree and three years of purchasing experience with Peptine immediately after college. He is a good fit for Fitzgerald’s needs. He was hired by Jane Fitzgerald, Vice President of Operations and daughter of the company president. Recently the company has been having difficulty meeting delivery schedule deadlines. Don was hired to improve the company’s performance in on-time deliveries. So far, he has been learning the systems of the operations and studying possible solutions, but he has not yet determined the best course of action to recommend. On Friday, June 21, a $300,000 order, which had been in the shop for nearly two months, was scheduled for shipment. On the Wednesday before scheduled delivery, the customer called and asked that delivery be delayed due to a labor dispute and work stoppage at his location. Although he expected the strike to be settled within one week or less, he was concerned that delivery of the order from Fitzgerald during the strike might cause unnecessary misunderstandings in the labor dispute. Don discussed this request with Jane, and they agreed to accommodate the customer’s request on the condition that the customer agree to being billed on the originally scheduled delivery date and to pay on the originally contracted payment terms. The customer accepted those terms. On Friday morning, June 21, the production manager reported to Don that the order would not be completed as scheduled and would probably require at least one more week to finish. Concerned about the impact of this delay on his job status, Don decided to investigate the cause of the delay before informing Jane of the problem. Before he could complete his inquiry, Jane called to inform him that she had just mailed the invoice for the order as agreed. She also suggested that Don negotiate with the customer a storage fee for the order, which would be paid in addition to the billing arrangement. Don wondered what he should say to Jane next. NOTE: Each answer and response should a minimum of 10 sentences in length and provide detail and examples. Justice approach 1. How fairly does each of the options balance the benefits arid burdens among the various stakeholders (Don, Jane, customer and production manager)? Use examples for the benefit and burden. 2. Which stakeholders bear the most burden if Don withholds information from Jane? Apply the justice approach.
  4. The case scenario provided will be used to answer the discussion questions that follow.