Assignment 3 Capstone Research ProjectProject Parameters:You have been selected as the consultant to develop a business plan for Durango ManufacturingCompany, which is a start-up, medium-sized public manufacturing company. The CEO has abackground in manufacturing and is well versed in supply chain management. However, the CEOhas limited experience in financial management and creating value for the various stakeholdergroups. Your business plan must include a five (5) year strategy to increase revenues by 10% and arecommendation for creating an organizational structure to comply with SOX mandates for strongcorporate governance over the internal controls. Your business plan must also includeprescriptions for creating an ethical environment. Your recommendation must be approved by theBoard of Directors before the company can begin its operations.Based on your knowledge of accounting and financial, prepare a ten to twelve (10-12) page reportin which you:1. As the consultant, create an argument that you will present to the CEO that suggestsaccounting and financial management knowledge and skills will be essential to thecompany’s success and stability over the next five (5) years. Provide support for yourargument.2. Suggest to the CEO how the company’s stakeholders (investors, lenders, and employees) willuse financial statement information and ratio calculations to make key determinationsrelated to the financial condition and operational efficiency of the company. Provide supportfor your rationale.3. Given the strategy to increase revenue during the five (5) year plan period, which will need tobe achieved through expansion and capital expenditures, determine which capital budgetingratio is appropriate for Durango to evaluate its proposals for capital expenditures, such asNPV, IRR, etc. Defend your position.4. In order for the company to improve its operational efficiency, recommend which productiondepartments should use process, job order, and activity-based costing—all three (3) ofwhich must be implemented within Durango. Defend your choice for each department.5. The CEO would like to consider outsourcing his manufacturing operations if labor can besupplied cheaper overseas than in the U.S. Create an argument either for or againstoutsourcing the manufacturing operation to a foreign country. Your argument should includekey points that support your position. The key points should address economic and business
