Compusell practice case.DGTI
Enviado por Red RENUTEG • 7 de Agosto de 2022 • Apuntes • 771 Palabras (4 Páginas) • 39 Visitas
Universidad Autónoma de Querétaro[pic 1]
Facultad de Contaduría y Administración
Suppose you are a manager in the personal computer division of Compusell Corporation, a large firm that manufactures many different types of computers. You come up with an idea for a new type of personal computer, which you call the FCA3000. You may be able to develop a prototype of the FCA3000 end even test market it for relatively little money and, therefore, you don´t bother doing a full-fledged discounted cash flow analysis in the early phases of the project.
If your project idea gets to the point at which a large sum of cash must be expended, then you must prepare a capital appropriation request that detail the amount of capital required and the projected benefits to the corporation from undertaking the project. The next table show the estimated operating cost (fixed & variable).
Costs | Amount (usd) |
Advertising Expense | $600,000 |
Utilities services | 500 |
Direct labor | 8,000,000 |
Packaging | 150 |
Rent expense | 200,000 |
Administration | 800,000 |
Sales person (Commission expense) | 400 |
Raw material | 1,000 |
Selling expenses | 350,000 |
Lease payment | 1,500,000 |
Energy cost | 300 |
Other fixed cost | 250,000 |
Depreciation | |
Interest expense |
Your estimates assume that the sales will be 4,000 units per year at a price of $6,500 per unit. A new production facility will be leased for $ 1.5 million per year and production equipment will have to be purchased at a cost of about 4.8 million. The equipment will be depreciated over five years using the straight-line method with a 15% of salvage value. In addition, you estimate a need for $4.2 million for working capital –primarily to finance inventories- thus bringing the total initial outlay required to $ 9 million.
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