Daktronics is planning to invest in CRM platform. The consul…
Daktronics is planning to invest in CRM platform. The consultants assessed that NPV of CRM platform would be somewhat modest ($ -300,000). However, they recognized two growth options of predictive pricing model and social media monitoring. What is the modified NPV of the CRM platform + the two option values? Should Daktronics invest in this project? Project Cost Hi Returns Low Returns Prob Hi Prob Low Predictive pricing model $150,000 $300,000 $200,000 0.2 0.8 Social media monitoring $70,000 $500,000 $100,000 0.3 0.7
Read DetailsUse this problem description to answer the following three q…
Use this problem description to answer the following three questions. A plastic molding machine produces a product whose annual demand is in the millions. The machine is automated and used full time just for the production of this product. The molding cycle time = 45 sec. No tooling is required other than the mold, which cost $100,000 and is expected to produce 1,000,000 moldings (products). The plastic molding compound costs $1.20/lb. Each molding weighs 0.88 lb. The only labor required is for a worker to periodically retrieve the moldings. Labor rate of the worker = $18.00/hr including overhead. However, the worker also tends other machines and only spends 20% of his time on this machine. Setup can be ignored because of the long production run. The molding machine was purchased for $500,000 installed, its anticipated life = 10 years, and it operates 6,000 hours per year. Equipment overhead rate = 30%. Availability = 100% and scrap rate = 0.
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