Course Project A
For Project A, you will need to review the Course Project Instructions in Document Sharing. An Excel template file can be also found in Doc Sharing. Use it to do your master budget and supporting schedules. This project will help you learn and understand what a master budget is and how it is prepared. When you have completed Project A, upload it into the Dropbox. There will be a discussion thread area in Weeks 4 and 5 that you can use to ask questions about the project.
Grading Rubric for Course Project (Part A)
|
Category |
Points |
% |
Description |
|
Documentation |
10 |
10% |
Project worksheets will be done in Excel and will contain formulas to receive maximum credit. |
|
Organization |
10 |
10% |
Calculations should be organized and correctly labeled. |
|
Editing |
10 |
10% |
Quality work will be free of any spelling, punctuation, or grammatical errors. |
|
Content |
70 |
70% |
A quality project will have all required work completed and will be correct. |
|
Total |
100 |
100% |
A quality project will meet or exceed all of the above requirements. |
See Syllabus, Due Dates for Assignments & Exams, for due date information.
Course Project B
Clark Paints: The Production Department has been investigating possible ways to trim total production costs. One possibility currently being examined is to make the paint cans instead of purchasing them. The equipment needed would cost $200,000, with a disposal value of $40,000, and it would be able to produce 5,500,000 cans over the life of the machinery. The Production Department estimates that approximately 1,100,000 cans would be needed for each of the next five years.
The company would hire three new employees. These three individuals would be full-time employees, working 2,000 hours per year and earning $12.00 per hour. They would also receive the same benefits as other production employees, 18% of wages, in addition to $2,500 of health benefits.
It is estimated that the raw materials will cost 25¢ per can and that other variable costs would be 5¢ per can. Since there is currently unused space in the factory, no additional fixed costs would be incurred if this proposal is accepted.
It is expected that cans would cost 45¢ each if purchased from the current supplier. The company’s minimum rate of return (hurdle rate) has been determined to be 12% for all new projects, and the current tax rate of 35% is anticipated to remain unchanged. The pricing for a gallon of paint, as well as the number of units sold, will not be affected by this decision. The unit-of-production depreciation method would be used if the new equipment is purchased.
Required:
1. Based on the above information and using Excel, calculate the following items for this proposed equipment purchase:
2. Would you recommend the acceptance of this proposal? Why or why not? Prepare a short, double-spaced Word paper elaborating and supporting your answer.
Note: A sample problem can be found in Doc Sharing (Word document instructions and Excel document solution).
Grading Rubric for Course Project (Part B)
|
Category |
Points |
% |
Description |
|
Documentation |
6 |
10% |
Project worksheets will be done in Excel and will contain formulas to receive maximum credit. Work will be appropriately cited. |
|
Organization |
6 |
10% |
Calculations should be organized and correctly labeled. Also, for the Part B paper, a quality paper will include an introduction of the company and industry. In a quality project, the conclusion will summarize the strengths and weaknesses and their recommendations. |
|
Editing |
6 |
10% |
Quality work will be free of any spelling, punctuation, or grammatical errors. Sentences and paragraphs (where appropriate) will be clear, concise, and factually correct. |
|
Content |
42 |
70% |
A quality project will have all required work completed and will be correct. |
|
Total |
60 |
100% |
A quality project will meet or exceed all of the above requirements. |
See Syllabus, Due Dates for Assignments & Exams, for due date information.
