OverviewIn this assignment, you will take on the role of a senior member of the finance team assigned to lead the investment committee of a medium-sized telecommunications equipment manufacturer. Your team is evaluating a “make-versus-buy” decision that has the potential to improve the company’s competitiveness, but which requires a significant capital investment in new equipment. The assignment is organized into two parts:Part A: Data calculations based on the information in the scenariosPart B: Recommendations based on the calculationsThe company has been growing steadily over the past 5 years, and the financials and future prospects look good. Your CEO has asked you to run the numbers. After doing some digging into the business, you have gathered information on the following:The estimated purchase price for the equipment required to move the operation in-house would be$750,000. Additional net working capital to support production (in the form of cash used in Inventory, AR net of AP) would be needed in the amount of $35,000 per year starting in year 0 and through all years of the project to support production as raw materials will be required in year o and all years to run the new equipment and produce components to replace those purchased from the vendor..The current spending on this component (i.e. annual spend pool) is $1,200,000. The estimated cash flow savings of bringing the process in-house is 20% or annual savings of $240,000. This includes the additional labor and overhead costs required.Finally, the equipment required is anticipated to have a somewhat short useful life, as a new wave of technology is on the horizon. Therefore, it is anticipated that the equipment will be sold after the end of the project (the last year of generated cash flow) for $50,000. (i.e. the terminal value).Input from StakeholdersAs part of your research, you have sought input from a number of stakeholders. Each has raised important points to consider in your analysis and recommendation. Some of the points and assumptions are purely financial. Others touch on additional concerns and opportunities.1. Andrew, your colleague from Accounting, recommends using the base assumptions above: 5-year project life, flat annual savings, and 10% discount rate. Andrew does not feel the equipment will have any terminal value due to advancements in technology.2. Stanley from Sales is convinced that this capability would create a new revenue stream that could significantly offset operating expenses. He recommends savings that grow each year: 5-year project life, 10% discount rate, and a 10% annual savings growth in years 2 through 5. In other words, instead of assuming savings stay flat, assume that they will grow by 10%% in year 2, and then grow another 10% over year 2 in year 3, and so on. Stanley feels that the stated terminal value is reasonable and used it in his calculations.3. Eva from Engineering believes we use a higher Discount Rate because of the risk of this type of project. As such, she is recommending a 5-year project life and flat annual savings. Eva suggests that even though the equipment is brand new, the updated production process could have a negative impact on other parts of the overall manufacturing costs. She argues that, while it is difficult to quantify the potential negative impacts, to account for the risk, a 12% discount rate should be used. Being an engineer, Eva feels that the stated terminal value is low based on her experience, and is recommending a $75,000 terminal value,4. Paul, the Product Manager, is convinced the new capability will allow better control of quality and on-time delivery, and that it will last longer than 5 years. He recommends using a 7 Year Equipment Life (which means a 7-year project and that savings will continue for 7 years), flat annual savings, and 10% discount rate. In other words, assume that the machine will last 2 more years and deliver 2 more years of savings. Paul also feels the equipment will have an estimated terminal value of $25,000 at the end of its 7- year useful life as it will be utilized longer thus having less value at the end of the project and savings.5. Olivia, the head of Operations, is concerned that instead of stabilizing the supply chain, it will just add another process to be managed, and will distract from the core competencies the company currently has. She feels the company should focus on improving communication and supply chain management with its current vendor, and she feels confident he can negotiate a discount of 4% off of the annual outsourcing cost of $1,200,000 if she lets it be known they are considering taking over this step of the process. As there is little risk associated with Olivia’s proposal due to no upfront capital requirements, a lower risk-free discount rate of 7% would be appropriate. Oliva feels that any price reductions from the current vendor will last for five years. (NOTE: because there is no “investment”, the Payback and IRR metrics are not meaningful. Simply provide the NPV of the Savings cash flows).PART A: Data CalculationsUsing the data presented above (and ignoring the extraneous information), for this profit and supply chain improvement project, calculate each of the following (where applicable):Nominal PaybackDiscounted PaybackNet Present ValueInternal Rate of ReturnScenario Nominal Payback Discounted Payback Net Present Value Internal Rate of Return#1: Andrew#2: Stanley#3: Eva#4: Paul#5: Olivia N/A N/A N/ASubmission RequirementsPresent your calculations and results either in an Excel Spreadsheet or in Word (using tables and headers to organize the information in a way that is clear and easy to read). Be sure to show your detailed calculations. If you get something wrong, you may still be able to get partial credit.

Schedule M1 and M2 For Rocky Mountain Equipment Corporation Form 1120-FThe Rocky Mountain Equipment Corporation, a Colorado Corporation, was formed by two Colorado State University business school graduates. The Rocky Mountain Equipment Corporation incorporated on October 20, 1974. The main line of business is selling recreational equipment to outdoor enthusiasts. Starting in their parents’ garage, they have grown the corporation to a multi million dollar business.To comply with accounting requirements, the company uses an accrual method of accounting. Its accumulated earnings and profits as of December 31, 2016, were $1,200. It made cash distributions during its 2016 calendar tax year of $140,089. This consisted of $85,089 to preferred shareholders and $55,000 to common shareholders. The entire distribution to preferred shareholders is a taxable dividend. The $27,500 distribution on March 15, 2016, to common shareholders is a taxable dividend to the extent of $27,318 (99.33%), and the $27,500 distribution on September 15, 2016, to common shareholders is a taxable dividend to the extent of $26,118 (94.97%).The following profit and loss account appeared in the books of the Rocky Mountain Equipment Corporation for calendar year 2016 (see spreadsheet attached "CT2 - Assignment" TAB 2). It is required to file Form 1120 and completes Form 1120-F (M-1 and M-2).Exercise to be completed:Please prepare Schedule M-1 for Rocky Mountain Equipment Corporation using the financial information and Form 1120 line items provided above (see template attached).Please prepare Schedule M-2 for Rocky Mountain Equipment Corporation using the retained earning information provided (see template attached). To accurately calculate and support the ending balance, please complete a Retained Earnings Reconciliation Table.

This portfolio work project will give you practice with professional writing expectations, as well as motivating and persuading others by telling a story. Create a brief slide presentation, with graphics, and preferably your voice presenting, that analyzes the tools and strategies that leaders can use to build trust and collaboration, and explains why you believe storytelling is one effective tool for you to use to lead your team. The Creating a Presentation in the MBA Program Resources and the Guidelines for Effective PowerPoint Presentations [PDF] document will help you with this presentation. The Ariel Group explains that a story needs to follow a basic four-step format that gently leads the audience into the story, through the story, and connecting the story: The Ariel Group. (2011). Executive essentials: Storytelling [PDF]. Available from https://www.arielgroup.com/ Use this format, based on page 9 of the Ariel group resource, to create six slides (including cover page and references): Slide 1. Cover slide with title and your name, and a graphic for interest (be sure to credit graphic artist in the reference slide). Slide 2. Introduce the subject matter or business content, much as the introduction to a paper would do. Conversation example: "I think you've been doing a great job heading this initiative despite the hiccups you've encountered along the way. I want to make sure you don’t beat yourself up over this too much . . ." Presentation example: "Today I would like to speak to you about a new marketing strategy for our product . . ." NASA example: "NASA has a reputation for communication issues among teammates, but our team is going to change all of that." Slide 3. Provide an overview of the importance of storytelling. Specifically, analyze at least two tools leaders can use to build trust and relationships, foster collaboration, and help employees feel engaged with their work (storytelling is one of those tools; mention one or two others). Also, explain ways in which leaders use storytelling to build trust and relationships. Slide 4. Transition into the story. This slide should transition into your story, setting the expectations of the audience of what is to come. Conversation example: "In fact, back when I was a team leader, I had a similar experience . . ." Presentation example: "Let me share with you a story to illustrate a vision of how we can work together . . ." NASA example: "I once worked at another company that had some major communications issues. It wasn't life or death like here at NASA, but we did have some serious problems in communications that impacted our ability to be effective." Slide 5. Tell the Story. This slide should actually tell your story: Set the stage. Describe the conflict. Describe the resolution. Example: "It's 2012. I’m out on the soccer field with my son when he turns to me and says . . ." NASA example: "About 10 years ago I was working as a shift leader at a manufacturing facility where safety was supposedly part of the culture, yet we had a frighteningly bad safety record . . ." Continue the story. Slide 6. Connect the story to a teaching point or subject matter. This slide should bring your story back to the issue at hand. Personal learning: "What my son said to me reminded me so powerfully that there is always a fresh, new way to look at any challenging situation." Message for the group: "Ladies and gentlemen, are we willing to shift our marketing strategy in a whole new direction, to take a risk in the way that my son did? I certainly am." NASA example: "In this situation, we learned this and that. Here at NASA, we can do the same thing. We can prove that communications this and that." Think of this like explaining the moral of the story.' https://youtu.be/RbA2eHO_YdY https://youtu.be/uUsib8wsKdM