Quality Management and Control

User Generated

wjnyy14

Business Finance

Description

The team works for a company that is looking to make an acquisition of another company. The team must make a recommendation as to whether or not the company should make an offer based on the information below. The team must present their recommendation and all supporting information to the executive team.

Select a company (General Electric) with which the team is familiar. This should be a publicly traded company with sufficient financial data available online.

Identify the following information on the selected company:

  • Revenues = increasing by 8% each year
  • Expenses = increasing by 10% each year
  • Tax rate = 25%
  • Discount rate = 10%


Part I

Compute and analyze the financial data using a Microsoft® Excel® spreadsheet. Make sure all calculations can be seen in the background of the applicable spreadsheet cells. In other words, leave an audit trail so others can see how you arrived at your calculations and analysis. Items should be submitted in Microsoft® Excel®; indicate your recommendation in the Microsoft® Excel® spreadsheet:

  • Calculate the 5-year projected income.
  • Calculate a 5-year projected cash flow.
  • Calculate net present value (NPV).
  • Calculate the internal rate of return (IRR).
  • Determine if the team would recommend acquiring this company based on the 4 calculations above; do you recommend acquiring this company?

Identify a quantifiable measure for the company such as service time, percent of errors, etc. Select one of the following quality control tools to evaluate this data:

  • Flow chart
  • Cause and Effect (Fishbone) Diagram
  • Pareto Chart
  • Control Charts
  • Histograms
  • Scatter Diagrams

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Explanation & Answer

Good luck in your study and if you need any further help in your assignments, please let me know Can you please confirm if you have received the work? Once again, thanks for allowing me to help you R MESSAGE TO STUDYPOOL NO OUTLINE IS NEEDED AS IT IS A

2015
Sales
117,386,000
cost of good
85,298,000
GP
32,088,000
Operating expe.
20,439,000
Operating income
11,649,000
Interest expenses
516,000
net income before tax 11,133,000
1,700,000
Income from continuing operations
-6,126,000
dicontinued operations
net income
17259000

Year
Net Income

2017
136919030.4
103210580

2018
147872553
113531638

32,949,080

33,708,450

34,340,915

22482900

24731190

27204309

10466180

8977260

7136606

567600

624360

686796

9898580

8352900

6449810

1870000
0

2057000

2262700

0
8352900

0
6449810

9898580

2015
$

2016
126776880
93827800

2016

17,259,000

$

9,898,580

2017
$

8,352,900

Total loss over 5 year period $

8,541,553

Percent decrease Year over Year
Total percentage loss over 5 year period

NPV
IRR

2018
$

6,449,810

-42.65%
86%

$37,886,577.84
0%

Accroding to NPV, the company is worth investing in since it has a positive NPV
According to IRR, the value is less than the discount rate hance the company is not viable for investment

2019
159702357
124884802

2020
172478546
137373282

34,817,555

35,105,264

29924740

32917214

4892815

2188050

755476

831023

4137340

1357027

2488970

2737867

0
4137340

0
1357027

2019
$

able for investment

4,137,340

2020
$

1,357,027

Revenue - Cost of goods = GP
GP- operating expenses...


Anonymous
Excellent resource! Really helped me get the gist of things.

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