Group number >>> 8

Group members
Name Student number
Shivam Sood 8878454
Vaibhav Atulbhai Malvaniya 8861218
Varsha Sowparnika Talkal 8841149
Shivansh Sinha 8870997
Divansh Singh 8872972
Item 5 4 3 2 1 0 Student score

Appendix one Clear One minor item missing Few minor items missing Major items missing Few items mentioned Unclear 3
All explanations Two explanations Three explanations Four explanations
Appendix two provided One explanation missing missing missing missing None explained 3

Appendix three Clear One minor item missing Few minor items missing Major items missing Few items mentioned Unclear 3
Appendix four Clear One minor item missing Few minor items missing Major items missing Few items mentioned Unclear 3
Formatting All six followed One missing Two missing Three missing Four missing Five or more missing 3
Writing mechanics:
business tone, use of Exceeds expectations Appropriate Appropriate with some Somewhat appropriate Adequate Major errors 4
vocabulary and spelling errors

Total 19
 Data set

Particulars

Buying land, construction

building and getting ready for
use
NPV under construction ($608,680) Taxes, Insurance and Repairs
Project market value in 18
years
NPV under lease ($1,698,913) NPV

Particulars
First Lease
Next Lease
Repair and Maintenance
One time deposit
One time deposits returned
NPV
 Calculations
Construction
Cash flow Year PV @11%

($690,000) 1 1
($25,000) 1-18 7.702

$1,790,000 18 0.153

LEASE
Cashflow Year PV@11%
($180,000) 1 1.000
($160,000) 1-17 7.549
($35,000) 1-18 7.702
($49,000) 1 1.000
$49,000 18 0.153
 Marks

Results

($690,000) 1
($192,550) 2

$273,870 2
($608,680) 1

Results
($180,000) 2
($1,207,840) 1
($269,570) 2
($49,000) 1
$7,497 2
($1,698,913)
0
0

Total marks 14
 2019 2018

Current Assets / Current Current Assets / Current

Current ratio Liabilities Liabilities

Current assets 245000 167000

Current Liabilities 90000 87000
Current Ratio 245000/90000 167000/87000
2.72 1.92

Average receivables/ Credit sales * 365

Days sales outstanding

Average Receivables
(80000 + 45000 )/2 62500
Credit sales 600000
Days sales outstanding 62500 / 600000 * 365
38 days

Times Interest earned EBIT / Total Interest Expenses

EBIT 135000
Total Interest Expenses 15000
Times Interest earned 135000 / 15000
9 times

Profit Margin Ratio Net Profit / Net sales * 100

Net profit 80000

Net sales 600000
Profit Margin Ratio 80000 / 600000 * 100
13.33%

Days in inventory Average Inventory / cost of goods sold * 365

Average Inventory
(65000 + 70000) / 2 67500
Cost of goods sold 300000
Days in inventory 67500 / 300000 * 365
82 days

Return on assts Net cash provided operating activities / Average

current liabilities
 Net cash provided operating activities / Average
current liabilities

Net income0 80,000

Total average assets
(515000 + 471000) / 2 466,000
Return on assts 80000 / 466000 * 100
17.17%

Cash current debt coverage ratio Net cash provided operating activities / Average
current liabilities

Net cash provided operating activities 53000

Average current liabilities
( 90000 + 87000) / 2 88500
Cash current debt coverage ratio 53000 / 88500
0.6
 Ratio
a. Current ratio 3

b Days sales outstanding 38 days

c. Times interest earned 9 Times

Profit margin
d. 13.33%

e. Days in Inventory 82 days

f. Return on assets 17.17%

g. Cash current debt coverage ratio 0.6

Compared to Industry Marks
High 1

Good 2

Good 2

Not good 2

Not good 2

Good 2

Good 1

Total 12
 Data set

Contribution margin 37.50%

New contribution margin 56.25%
New BEP 1102222.22
New BEP in units 27556 units
Degree of operating leverage 3.21
 Calculations

Sales
Variable cost
Contribution
Contribution margin Contribution / sales *100
Contribution margin increases 50%
New variable cost 1-New contribution margin

New BEP Fixed cost / Contribution margin

New BEP per units
New BEP in units

Net contribution margin

Fixed cost
Net operating profit
Degree of operating leverage Contribution / Net operating profit

z
culations

1600000 1
1000000
600000
600000/1600000*100 37.50%
37.50%*1.5 56.25%
100-56.25% 43.75%

620000/56.25% 1102222.22 0
1102222.22/40000 27.5555555 0
620000/22.50 27555.5555555556 2

1600000*56.25% 900000
400000*155% 620000
280000
900000/280000 3.21 2

Total 5
 Data Set Calculations

Relevant Cost -1286250

Direct Material
( 55000 * 20 * 5 )
Direct labor
( 55000 * 50 * 87% * 5)
Variable Factory Overhead
Supplies
(55000 * 15 * 87 % * 5)
Supervision
(55000 * 10 * 115% * 5)
Depreciation
External Purchase Cost
(5500 * 100 * 5)
Total Relevant Cost
Calculations

MAKE BUY Difference Marks

5500000 5500000

11962500.00 11962500.00

3588750 3588750

3162500 3162500

2000000 2000000
-27500000 -27500000

-1286250