Decision Making Skills

Order Description

As a manager, part of your role is to develop strategy, and share this strategy with various stakeholders within” rel=”nofollow”>in the organization. This assignment will allow you to take your fin” rel=”nofollow”>indin” rel=”nofollow”>ings as a manager
and communicate these fin” rel=”nofollow”>indin” rel=”nofollow”>ings to those who are affected.

Your company has been presented with a decision on replacin” rel=”nofollow”>ing a piece of equipment for a new computerized version that promotes efficiency for the upcomin” rel=”nofollow”>ing year. As manager you will need to decide
whether or not the purchase of the new equipment is a worthwhile in” rel=”nofollow”>investment and to communicate your recommendations to Executive Management for a fin” rel=”nofollow”>inal decision. To be convin” rel=”nofollow”>incin” rel=”nofollow”>ing, sufficient
support for your recommendations must be provided in” rel=”nofollow”>in order to be considered valid and accepted.

Existin” rel=”nofollow”>ing Equipment
Origin” rel=”nofollow”>inal Cost 60,000
Present Book Value 30,000
Annual Cash Operatin” rel=”nofollow”>ing Costs 145,000
Current Market Value 15,000
Market Value in” rel=”nofollow”>in Ten Years 0
Remain” rel=”nofollow”>inin” rel=”nofollow”>ing useful Life 10 years

Replacement Equipment
Cost 600,000
Annual Cash Operatin” rel=”nofollow”>ing Costs 50,000
Market Value in” rel=”nofollow”>in Ten Years 0
Useful Life 10 years

Other Information
Cost of Capital 10%
Payback requirement 6 years

In this assignment, use the in” rel=”nofollow”>information above to develop a comprehensive analysis usin” rel=”nofollow”>ing NPV, Payback Method, and IRR to develop a recommendation on replacin” rel=”nofollow”>ing the existin” rel=”nofollow”>ing equipment with a new
computerized version. Develop an executive summary of your fin” rel=”nofollow”>indin” rel=”nofollow”>ings in” rel=”nofollow”>in a Microsoft PowerPoin” rel=”nofollow”>int presentation format to present to Executive Management.

Do the followin” rel=”nofollow”>ing in” rel=”nofollow”>in your presentation:
•Include a statement of the problem or topic, a concise analysis of the fin” rel=”nofollow”>indin” rel=”nofollow”>ings, and a recapitulation of any main” rel=”nofollow”>in conclusions or recommendations.
•Be sure to in” rel=”nofollow”>incorporate specific details to highlight or support the summary in” rel=”nofollow”>includin” rel=”nofollow”>ing calculations.
•Usin” rel=”nofollow”>ing your knowledge of capital budgetin” rel=”nofollow”>ing techniques, explain” rel=”nofollow”>in how prin” rel=”nofollow”>inciples of capital budgetin” rel=”nofollow”>ing, such as the payback method, IRR, and NPV, can be used to assess the potential projects and assist
in” rel=”nofollow”>in the decision-makin” rel=”nofollow”>ing process.

Develop a 10-12 slide presentation in” rel=”nofollow”>in PowerPoin” rel=”nofollow”>int format. Apply APA standards to citation of sources. Use the followin” rel=”nofollow”>ing file namin” rel=”nofollow”>ing convention: LastnameFirstInitial_M4_A2.ppt.

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