hi you previous helped with this assignment and i did not receive a good grademadamk17
Prepare either a 3–4 page report in which you analyze financial information and risks associated with an investment to expand an organization and also make a recommendation on whether or not to invest in expansion.
Introduction
This portfolio work project will allow you to review information and risks associated with an investment to expand an organization. As this information will be shared broadly across the organization, you will have a choice about your final deliverable audience, and you will organize your deliverable to meet the needs of that audience.
Scenario
ZXY Company is a food product company. ZXY is considering an expansion that includes two new products and a second production facility. The food products are staples with steady demands. The proposed expansion will require an investment of $7,000,000 for equipment with an assumed ten-year life, after which all equipment and other assets can be sold for an estimated $1,000,000. The company will be renting the facility. ZXY requires a 12 percent return on investments. You have been asked to recommend whether or not to make the investment.
Your Role
You are an accounting manager. Your boss has asked you to review and provide a recommendation on the expansion based on information that has been provided.
Requirements
In preparing and supporting your recommendation to either make the investment or not, include the following items 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 Information
As part of your analysis you might find that additional information from marketing, accounting, or finance would be useful in making an informed and well-supported recommendation. In a real workplace setting you would have the ability to ask for that information. However, for the purposes of this assessment, you can make assumptions 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 [XLSX] spreadsheet for the new products business and the new facility.
Notes about the financial information:
- The expense line labeled SQF FDA Mandates refers to the costs of complying with U.S. Food and Drug Administration requirements.
- Depreciation expense is calculated using a 7-year life modified accelerated cost recovery system (MACRS).
- Report for a mid-management audience. Prepare a 3–4 page report detailing your recommendation and the information you used to make your recommendation.
Related company standards for either format:
- The recommendation report is a professional document and should therefore follow the corresponding MBA Academic and Professional Document Guidelines, including single-spaced paragraphs.
Competencies Measured
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies through corresponding scoring guide criteria:- Competency 2: Apply principles of accounting to assess financial performance.
- Analyze financial statements for decision support.
- Explain risks associated with an investment decision.
- Competency 3: Analyze accounting information to support business decisions.
- Recommend a course of action based on financial information.
- Explain how financial criteria support a decision.
- Competency 2: Apply principles of accounting to assess financial performance.
ATTACHMENTS
cf_zxy_company_financial_statements.xlsx
What you can expect:
A high quality explanation and answer with in your time limit
Quick responsive communication
Original explanations and answers with any outside resources cited
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Scoring Guide
Competency 2
Apply principles of accounting to assess financial performance.
Criterion
Analyze financial statements for decision support.
Your Result:BASIC
Identifies financial information but does not analyze it.
Faculty Comments:The NPV is -$6,726,417. The "Deliverable Format" notes that an appendix with supporting details should be included. The appendix should include the detailed calculations to support your analysis (i.e. how was NPV calculated). The amount submitted for NPV is excessive and it is not clear how the data in the assessment was used for your analysis.
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Criterion
Explain risks associated with an investment decision.
Your Result:BASIC
Identifies risks with the proposed investment without explaining.
Faculty Comments:Explain why certain factors pose a potential risk and how/when that risk might become salient for ZXY. Consider how the risk factors might play out. For example, is a particular risk factor more detrimental in the first few years, years 5 and 6, or the last few years? When might the identified risk be most challenging for the company? For each risk factor identified elaborate on the potential trajectory of the risk and its impact on the investment. Common risk factors which may be salient for this investment and potentially impact earnings include: regulatory risk, consumer risk, product risk, market risk, etc.
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Competency 3
Analyze accounting information to support business decisions.
Criterion
Recommend a course of action based on financial information.
Your Result:BASIC
Identifies a possible course of action but does not make a recommendation.
Faculty Comments:Before deciding whether to proceed with the project, the manager should know if the investment will potentially yield the desired return. In this case the desired return is 12%. NPV is a sound financial metric that should support the investment recommendation. The calculated NPV is far too inflated to be relied on. I recommend recalculating NPV before using it as a basis for the decision.
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Criterion
Explain how financial criteria support a decision.
Your Result:BASIC
Identifies financial criteria that support a decision without explaining how.
Faculty Comments:The recommendation is not supported by sound financial data. The measured financial performance should be used as the basis for the recommendation. Please review your analysis and then interpret it to provide a basis for supporting the recommendation. Coupled with the analysis of risk, a thoughtful, well-supported recommendation can be provided.
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Competency 4
Communicate financial information with multiple stakeholders.
Criterion
Communicate accounting information clearly.
Your Result:DISTINGUISHED
Communicates clearly and engages the reader with the fluidity of expression. There are few if any errors of mechanics, grammar, or style.
Faculty Comments:Although the discussion lacked substantive information to demonstrate whether the desired return was met, the discussion was generally free from free from spelling and grammar errors.
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done
one month ago
Hi will you be able to help with this?I recieved a basic grade and here are her suggestions
done
one month ago
Yes invite me as a new assignment with the results.
one month ago