An electronic chips manufacturing company is willing to open a new chips production plant to produce micro-chips. The Total investment they have set for such plant is valued at 3 million Dollars (in cash) to be paid immediately. The plant is designed to produce up to 8,000 chips a day. And is planned to commence production in July 2022. The chip cost of production is at $0.3 (Variable cost) and selling price is at $0.8. Other associated cost is valued at $0.2 (Fixed Costs). There are no further associated costs. And no debt. Make sure to reflect the taxation rates of 10%. Given the above, each student is required to develop a business plan that covers the following areas: 1. Project Description: Here you must briefly explain the project, how the blocks are produced (process steps), make sure to show the flow chart of the process, addressing the critical path 2. Material Resourcing: the students should elaborate where they shall get the raw material for producing the chips. a 3. Organization Chart: You should draw an organizational chart that best fit a chips plant. Make sure to show the shifting of employees (knowingthat the factory could work in 3 shifts or 2 shifts. Explain which is a better option (financially and non-financially) 4. Financial Model: you should develop a Profit and Loss (P&L) schedule, showing revenues, operating margin, EBITDA margin. And Net profit Margin. Explain how could net profit margins could be improved. 5. Investment Details: you must show the investment details by calculating the following: 1- Investment Rate of Return (IRR) 2- Return on Investment (ROI) 3. Net Present Value (NPV) 4- Benefit-Cost Ratio (BCR) 5- Payback Period 6. Recommendation: you should explain is the business worth it and why, based on the availability of material and based on the investment details you have obtained. Project schedule: you should develop a Gantt chart showing the setup phases of the plant. Make sure you show all related personnel involved in each step with respect to your organization structure. An electronic chips manufacturing company is willing to open a new chips production plant to produce micro-chips. The Total investment they have set for such plant is valued at 3 million Dollars (in cash) to be paid immediately. The plant is designed to produce up to 8,000 chips a day. And is planned to commence production in July 2022. The chip cost of production is at $0.3 (Variable cost) and selling price is at $0.8. Other associated cost is valued at $0.2 (Fixed Costs). There are no further associated costs. And no debt. Make sure to reflect the taxation rates of 10%. Given the above, each student is required to develop a business plan that covers the following areas: 1. Project Description: Here you must briefly explain the project, how the blocks are produced (process steps), make sure to show the flow chart of the process, addressing the critical path 2. Material Resourcing: the students should elaborate where they shall get the raw material for producing the chips. a 3. Organization Chart: You should draw an organizational chart that best fit a chips plant. Make sure to show the shifting of employees (knowingthat the factory could work in 3 shifts or 2 shifts. Explain which is a better option (financially and non-financially) 4. Financial Model: you should develop a Profit and Loss (P&L) schedule, showing revenues, operating margin, EBITDA margin. And Net profit Margin. Explain how could net profit margins could be improved. 5. Investment Details: you must show the investment details by calculating the following: 1- Investment Rate of Return (IRR) 2- Return on Investment (ROI) 3. Net Present Value (NPV) 4- Benefit-Cost Ratio (BCR) 5- Payback Period 6. Recommendation: you should explain is the business worth it and why, based on the availability of material and based on the investment details you have obtained. Project schedule: you should develop a Gantt chart showing the setup phases of the plant. Make sure you show all related personnel involved in each step with respect to your organization structure
