| MARRmarket | | 14% | | <<<CELLS IN YELLOW HAVE PRE-POPULATED FORMULAS>>>
YOU DO NOT NEED TO ENTER A FORMULA THERE. | | | | | | Multi-Weighted Scoring |
| Inflation | | 1.9% | | | | | | | | | Strategic | | | | | | Financial |
| Adj. Rate | | 11.38% | | <<<CELLS IN PURPLE REQUIRED YOU TO ENTER EITHER A FORMULA OR
ADDITIONAL DATA (E.G. THE COST OF ALTERNATIVE DESIGNS.>>> | | | | | | Criteria | Core
competency | Closeness to Suppliers | Strategic
Fit | Market
Dynamics | 75% renewable
energy sources | Reduce
waste 50% | ROI | NPV | Weighted
total |
| | | | | | | | | | | Weight | 15% | 15% | 5% | 5% | 10% | 10% | 25% | 15% | 100% |
| | | | | | | | | | | Project 1 | | | | | | | 3 | 2 | 1.05 |
| | | | | | | | | | | Project 2 | | | | | | | 2 | 1 | 0.65 |
| Discount Factor | | 1 | 0.8977973568 | 0.8060400939 | 0.7236606658 | 0.649700633 | 0.5832995111 | 0.5236847593 | | Project 3 | | | | | | | 1 | 3 | 0.7 |
| Investment Period | | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
| PROJECT ONE: New Factory Location A
Closest location to farms, located in new geographic district, designed to expand capacity the current product lines. State rebates for sustainable design, however, waste cannot be used as energy source. |
| Inflow | | $ - 0 | $ - 0 | $ 950,000.00 | $ 1,200,000.00 | $ 1,000,000.00 | $ 1,450,000.00 | $ 1,600,000.00 |
| Outflow | | $ 1,950,000.00 | $ 650,000.00 | $ 150,000.00 | $ 150,000.00 | $ 300,000.00 | $ 150,000.00 | $ 150,000.00 |
| Net flow | = Benefits-Costs | $ (1,950,000.00) | $ (650,000.00) | $ 800,000.00 | $ 1,050,000.00 | $ 700,000.00 | $ 1,300,000.00 | $ 1,450,000.00 |
| Discounted Benefits | = Yearly Benefit*Discount Factor | $ - 0 | $ - 0 | $ 765,738.09 | $ 868,392.80 | $ 649,700.63 | $ 845,784.29 | $ 837,895.61 |
| Discounted Costs | = Yearly Cost*Discount Factor | $ 1,950,000.00 | $ 583,568.28 | $ 120,906.01 | $ 108,549.10 | $ 194,910.19 | $ 87,494.93 | $ 78,552.71 |
| Disc. Benefits-Disc. Costs | = Disct Benefiits - Disct Costs | $ (1,950,000.00) | $ (583,568.28) | $ 644,832.08 | $ 759,843.70 | $ 454,790.44 | $ 758,289.36 | $ 759,342.90 |
| Cummulative [Disc. Benefits - Disc. Costs] | | $ (1,950,000.00) | $ (583,568.28) | $ 644,832.08 | $ 759,843.70 | $ 454,790.44 | $ 758,289.36 | $ 759,342.90 |
| NPV | $ 843,530.20 |
| ROI | 27.00% |
| PROJECT TWO: New Factory Location B
Far from farms but within proximity to railroad and interstate highways, designed includes facilities for two new product lines. 100% solar energy but poor disposal alternatives. New product lines could bring an extra 10% in inflows per year, and will have an extra maintenance cost of $75,000 per year | | | | | | | | | | Design Alternatives |
| Inflow | | $ - 0 | $ 500,000.00 | $ 750,000.00 | $ 1,000,000.00 | $ 1,000,000.00 | $ 1,000,000.00 | $ 2,000,000.00 | | | additional benefits/year |
| Outflow | | $ 2,500,000.00 | $ 150,000.00 | $ 150,000.00 | $ 200,000.00 | $ 200,000.00 | $ 250,000.00 | $ 250,000.00 | | | additional maintenance cost/year |
| Net flow | = Benefits-Costs | $ (2,500,000.00) | $ 350,000.00 | $ 600,000.00 | $ 800,000.00 | $ 800,000.00 | $ 750,000.00 | $ 1,750,000.00 |
| Discounted Benefits | = Yearly Benefit*Discount Factor | $0.00 | $448,898.68 | $604,530.07 | $723,660.67 | $649,700.63 | $583,299.51 | $1,047,369.52 |
| Discounted Costs | = Yearly Cost*Discount Factor | $2,500,000.00 | $134,669.60 | $120,906.01 | $144,732.13 | $129,940.13 | $145,824.88 | $130,921.19 |
| Disc. Benefits-Disc. Costs | = Disct Benefiits - Disct Costs | ($2,500,000.00) | $314,229.07 | $483,624.06 | $578,928.53 | $519,760.51 | $437,474.63 | $916,448.33 |
| Cummulative [Disc. Benefits - Disc. Costs] | | ($2,500,000.00) | $314,229.07 | $483,624.06 | $578,928.53 | $519,760.51 | $437,474.63 | $916,448.33 |
| NPV | $ 750,465.13 |
| ROI | 22.69% |
| PROJECT THREE: New Factory Location C
Closer to farms but limited access, with state plans for future highway expansion. Designed with similar specifications to current factory, with possibility of expansion. 50% solar powered and possibility of eolic energy due to location and state incentives. Design includes a WtE alternative, costing an additional $350,000 investment on year 1. | | | | | | | | | | Design Alternatives |
| Inflow | | $ - 0 | $ 550,000.00 | $ 850,000.00 | $ 1,150,000.00 | $ 1,150,000.00 | $ 1,750,000.00 | $ 1,750,000.00 |
| Outflow | | $ 3,250,000.00 | $ - 0 | $ 100,000.00 | $ - 0 | $ 100,000.00 | $ - 0 | $ 100,000.00 | | | additional cost in year 0 |
| Net flow | = Benefits-Costs | $ (3,250,000.00) | $ 550,000.00 | $ 750,000.00 | $ 1,150,000.00 | $ 1,050,000.00 | $ 1,750,000.00 | $ 1,650,000.00 |
| Discounted Benefits | = Yearly Benefit*Discount Factor | $0.00 | $493,788.55 | $685,134.08 | $832,209.77 | $747,155.73 | $1,020,774.14 | $916,448.33 |
| Discounted Costs | = Yearly Cost*Discount Factor | $3,250,000.00 | $0.00 | $80,604.01 | $0.00 | $64,970.06 | $0.00 | $52,368.48 |
| Disc. Benefits-Disc. Costs | = Disct Benefiits - Disct Costs | ($3,250,000.00) | $493,788.55 | $604,530.07 | $832,209.77 | $682,185.66 | $1,020,774.14 | $864,079.85 |
| Cummulative [Disc. Benefits - Disc. Costs] | | ($3,250,000.00) | $493,788.55 | $604,530.07 | $832,209.77 | $682,185.66 | $1,020,774.14 | $864,079.85 |
| NPV | $ 1,247,568.04 |
| ROI | 0.3618297076 |
dmmontel
MGMT368test1.xlsx
