Berkat Enterprise has approached you as a Senior Sales Engineer working in a business that manufactures Automated Bottling Machines, inquiring about the use of your product.

Berkat Enterprise is a company based in Tumpat, Kelantan that produces a traditional local fish sauce. Since the company is aiming for the European market, some processes in the sauce's production must adhere to GMP for international certification.

The business processes 3,000 kg of anchovies per day and requires 1,000 kg of the main ingredient salt per day. The fish is fermented in 200 large containers for 6 to 12 months, with 5,000 kg of fish mixture per container.

After that, the fish mixture is boiled and bottled. The bottling process is moving at a pace of 30,000 bottles per day, with a weekly target of 150,000 bottles. The bottling operation is managed by;

2 employees preparing the bottles.

4 employees for filling

4 employees for capping and labelling

2 employees load the bottles into crates for distribution.

In a sterile chamber, your computer fills, caps, and labels at a rate of 20 - 40 pieces per minute. The unit costs RM 70,000 and has a 7-year warranty. The machines are powered by 240V AC and 12 Amp.

The current unit cost is RM 1.00, with a retail price of RM 1.30.

Task 1

You must also generate a weekly cash flow table in Microsoft Excel for the first 12 months. Here are some Microsoft Excel functions that can be used to help with calculation utilising various approaches in estimating the profitability of any cashflows, such as:

Net Present Values (NPV) = Present Worth (PW) values

Internal Rate of Return (IRR): IRR is an abbreviation for Internal Rate of Return (IRR).

as well as numerous others Please investigate these features.

You must define and disclose your company's MARR value in your cashflow report.

a) Cost comparison of present operations against the proposed automated system

b) Make a list of all possible cash-outs (such as material costs, rental, shipping, and so on) and cash-ins (such as revenues, profit, cost savings, market values, and so on) for each alternative.

c) Evaluate each alternative in Microsoft Excel using the Equivalent Worth Method and the Internal Rate of Return Method. Then add a comment and draw a conclusion on the profitability of each choice. (You can construct several alternatives, including profitable and non-profitable options.) Learn how to do the evaluation using Microsoft Excel for both alternatives.)

d) Evaluate each alternative in Microsoft Excel using the Equivalent Worth Method and the Internal Rate of Return Method. Then add a comment and draw a conclusion on the profitability of each choice. (You can construct several alternatives, including profitable and non-profitable options.) Learn how to do the evaluation using Microsoft Excel for both alternatives.)

g) On a new tab of the same Microsoft Excel file, analyse all possibilities to determine which is the best. Utilize both methods: the Equivalent Worth Method and the Incremental Analysis Method. Based on all PW and IRR data, provide a conclusion and justification.

g) Add a comment and draw a conclusion.

Please presume that earnings are in accordance with the RM 1,000 monthly minimum wage. The interest rate on a business loan (if one exists) is 4%. Please also examine the TNB electricity pricing for commercial properties.

As seen above, all the options are evaluated through Equivalent Worth and Internal Rate of Return. Next, opine on profitability. You can include profitable as well as non-profitable options. Evaluation details using Microsoft Excel for both choices.

Evaluate every alternative by using Equivalent Worth Method, and by Internal Rate of Return Method. When doing so, make conclusions about profitability. You can include profitable as well as non-profitable options. Evaluation details using Microsoft Excel for both choices.

Following this, consider all available options to choose the best one. Use both methods: Equivalent Worth Method, and Incremens. base conclusion and reasoning on all PW and IRR values

Comment and summarise

Please presume that the wages are at least RM 1,000 a month. Business financing loan (if any exists) is at 4%. TNB also provides electricity rates for commercial customers.