Your course project will consist of a 15?20-slide Microsoft PowerPoint presentation. These slides will help you present your investment idea to the President and CEO of the public company. As such, the slides must be well crafted to help convince the leader of the company of the need for the investment, the possible risks, and potential returns. Remember, the slides should outline the key points to be made and not overwhelm the viewer with too many details. You will provide the details in the speaker notes for each slide. The slide presentation must include:
Cover page listing the company, project, date, and presenter.
Sufficient background so that a potential investor understands the business.
The investment idea and summary justification.
Enough historic data from the worksheet you develop in Modules 3 and 4 to give an investor an understanding of revenues, costs, expenses, cash flows, and potential returns in dollars and using capital budgeting analysis concepts to demonstrate viability.
The break-even of the project.
Your final analysis summary that details why the company should invest the money in this project.
Speaker notes in your Microsoft PowerPoint presentation to include background information that you would communicate verbally in a presentation. This speaker notes content should be the length necessary to explain the outline presented in the slides. Each slide must have the requisite speaker notes to explain the material/data presented in the slides as if you are making a formal presentation and expect to verbalize those words.
This slide presentation is due before the end of class on Day 5 of Module 5 and is worth 25% of your course final grade or 250 points. Combined with the other submitted elements of the project, the total points allocated to this course project will be 500 points or 50% of your grade. The grading of this project will be extensive to match the percentage of course grade. Make sure you provide substantial work in the creating of this project.
Breakdown of Course Project Work
Select public company and begin planning project.
Seek approval of the company, project investment idea, and justification by completing the Project Approval Input in the link provided.
Begin working on the Excel worksheet provided with the project to outline the revenues, costs, expenses, and resulting cash flows.
Submit the final Excel worksheet showing all data and calculations.
Submit Microsoft PowerPoint presentation complete with speaker notes before the end of class Day 4.
Assigned questions for Module 5 are:
Q16-1: What is Zero based budgeting?
Q16-2: A company?s annual sales budget is for 120,000 units, spread equally through the year. It needs to have one and three quarter?s month stock at the end of each month. If opening stock is 12,000 units, what are the number of units to be produced in the first month of the budget year?
Q16-3: The standard costs for a manufacturing business are ?12 per unit for direct materials, ?8 per unit for direct labour and ?5 per unit for manufacturing overhead. The sales projection is for 5,000 units, 3,500 units need to be in stock at the end of the period and 1,500 units are in stock at the beginning of the period. What will the production budget show in costs for that period?
Q16-4: Receivable increase by ?15,000 and payables increase by ?11,000. What is the effect on cash flow from the Statement of Cash Flow from these two items?
Q16-5: Randy Airplanes Ltd is a privately owned business. It has budgeted for profits (after deducting depreciation of ?41,000) of ?150,000. Debtors are expected to increase by ?20,000, inventory is planned to increase by ?5,000 and creditors should increase by ?8,000. Capital expenditure is planned of ?50,000, income tax of ?35,000 has to be paid and loan repayments are due totaling ?25,000. What is the forecast cash position of Randy?s at the end of the budget year, assuming a current bank overdraft of ?15,000?
Q17-1: What are a flexible, incremental, and activity-based budget? Please explain each.
Q17-2: A company has budgeted for materials of ?170,000 but the actual costs are ?164,000. The company has also budgeted for labour of ?130,000 with actual costs being ?133,000. What is the expense variance and is it favorable or adverse?
Q17-3a: How do increases/decreases in costs and/or prices effect each of the variances in standard costing?
Q17-3b: How do increases/decreases in production labor effect each of the variances in standard costing?
Q18-1: What is the difference between Kaizen costing, target costing, and life cycle costing?
Q18-2: Trans PLC estimates that a new product will sell in sufficient quantities to justify its manufacture at a selling price of ?175. The company needs to invest ?5 million to produce a quantity of 10,000 of these new products per year and requires a return on that investment of 12% per annum. The current prediction is that the product will cost ?140 to manufacture. How should Trans reengineer its costs to achieve the target selling price and target rate of return?
Q18-3: SkinTan?s top five customers generate sales revenue of ?950,000 per annum. Each generates a different gross margin as a consequence of price negotiations that have been carried out over several years. Because of their location, each customer incurs different distribution expenses. Sales commissions are paid at the rate of 6% on all sales. Fixed costs are customer specific, covering salaries of sales and office staff who service each customer. The following table shows the information for each of the top customers for the previous year.
Gross margin %
Carry out a customer profitability analysis and make recommendations in relation to any future strategies SkinTan should take in relation to its top customers.
By end of Module 2, complete the Project Approval Input and answer the questions provided.
Selects US public company and provides name and stock symbol. Explains interest in the company and in the investment project.
Excel Worksheet Requirements:
Identify the various revenues, expenses, costs, expenses, and cash flows. If a manufacturing company and investment deals with projects, the analysis breaks down costs into fixed and variable, direct and indirect.
All costs, revenues, expenses, and cash flows required to implement the project are identified, listed, and summed appropriately
Calculate the CVP or break-even point for the project.
Calculations are complete and accurate.
Calculate NPV and IRR. Provides the numeric viability of the project investment.
Calculations are complete and accurate.
Slide Presentation Requirements:
Includes a minimum of 15 slides
Each slide is formatted consistently with proper spelling and grammar.
Cover page listing the company, project, date, and presenter
Sufficient written background so that a potential investor understands the business.
Data from Excel Worksheet
Enough historic data from the graded worksheet to give an investor an understanding of revenues, costs, expenses, cash flows, and potential returns in dollars and using capital budgeting analysis concepts to demonstrate viability.
Present the breakeven and other types of analysis for the project.
Provide your final analysis summary that details why the company should invest the money in this project.
Speaker notes on each slide
Speaker notes in your PowerPoint presentation to include background information that you would communicate verbally in a presentation. This background information should be the length necessary to explain the outline presented in the slides. Each slide must have the requisite speaker notes to explain the material/data presented in the slides as if you are making a formal presentation and expect to verbalize those words.