Can you help me with this case study Guillermon using the three capital evaluation techniques I dont know how do the calculations portion for each technique please A) Internal Rate of Return IRR B) Net Present Value, or NPV C) Payback Period Enter the name of the team leader for this assignment in cell A3 of the Income Information tab in the Guillermo Furniture Data Sheets This will create a unique set of numbers for your team to analyze Every member of your team needs to enter the same name in exactly the same way so the resulting data will be the same for each team member Changes can be made to any of the data on the data sheet, but all changes should be documented explained within that file The final version of the file used in the analysis needs to be submitted with the paper Additional worksheets can be added in the file as needed to support the analysis Differentiate among at least three capital budget evaluation techniques Differentiation includes how the technique is computed, how the results are evaluated, what the technique measures, etc Explain how these different techniques would help the team make its recommendation to Guillermo Recommend a course of action (i e , which alternative Guillermo should choose) based on at least one of the capital budget evaluation techniques discussed Be sure to apply the technique(s) to all alternatives being considered and include present value calculations as part of the recommendation Any amounts included in the paper must be supported by relevant computations from the Guillermo Data Sheets as explained above Submit both your paper and Data Sheets as well as any other supporting files for grading The body of the paper should be no more than 1,100 words but should be at least 750 words Be sure the paper complies with APA standards no abstract is required This is to be a formal paper, so only third person is acceptable This paper will require the use of sources, at a minimum the Guillermo Furniture Scenario, the Guillermo Date Sheets, and the textbook Be sure to properly cite any sources used and include a properly formatted Reference page Income statement Setup Information Income Statement Lisalynn Pascua 0 08 Peso (1 Yes) 0 1 00 10 814 Mexican Pesos 1 000 US Dollars Current Hi Tech (Machines Needed) Broker (Distributor) Production Mid Grade 2,593 00 3,890 00 3,890 00 Production can be increased by 50 and the broker also anticipates that same level High End 519 00 779 00 779 00 Production can be increased by 50 Direct Materials ($) Unit Mid Grade 140 00 140 00 There are no material costs for brokered units High End 250 00 250 00 250 00 Direct Labor ($ HR) Unit 15 00 40 00 40 00 The labor rate is increased due to the technical skill level of operators Labor Time (Hrs) Unit Mid Grade 20 00 4 00 There are no labor times for brokered units and production times are 20 of original times High End 30 00 4 00 4 00 Production times are now equal to the mid grade level Direct Cost Unit Mid Grade 440 00 300 00 360 00 The Broker cost for Mid Grade is based on net FOB destination including shipping tariffs High End 700 00 410 00 410 00 Price Unit Mid Grade 509 00 459 00 459 00 Prices are reduced by 10 because supply is increased High End 879 00 789 00 789 00 Prices are reduced by 10 because supply is increased Plant Overhead Yr Wages 50,000 95,000 95,000 Need to add a 45,000 a year maintenance position for the equipment Utilities 9,000 27,000 4,505 Utilities are expected to be 3 x's current at full production (150 above current levels) based on units produced Benefits 106,145 84,204 21,964 Benefits are 10 of all wages (including direct labor) Insurance 3,000 15,000 15,000 Insurance will increase by 12,000 with the addition of the equipment and building expansion Property Taxes 975 3,900 3,900 Property taxes are 6 5 , assessment is 1 of original value, and that is on all plant equipment Depreciation 50,000 466,667 466,667 Buildings are at 30 years and Equipment is at 10 years, straight line Supplies 6,000 6,000 6,000 Supply expense is miscellaneous and does not vary Income Tax Expense 19,613 90,712 28,273 Taxes are 42 of Net Income 271,818 913,751 680,351 Net Margins 225,120 697,771 613,035 Overhead 46,698 215,980 67,316 Net Income before taxes Assets, Liabilities Equity Information 12 31 2014 12 31 2015 Cash $ 120,872 USD $ 168,329 USD Accounts Receivable 206,184 210,392 DSO 45 days Sales growth has slowed to 1 Inventory 121,591 125,352 The plant completes all work in process before year end inventory Inflation is running at 3 Pre paid Insurance 1,250 1,500 1 2 a year pre paid TOTAL CURRENT ASSETS $ 449,897 USD $ 505,573 USD Buildings 1,500,000 1,500,000 Less Accumulated Depreciation (600,000) (650,000) Current Building has been in use for 13 years Equipment 50,000 50,000 Less Accumulated Depreciation (50,000) (50,000) Equipment fully depreciated several years ago TOTAL ASSETS $1,349,897 USD $1,355,573 USD Accounts Payable $ 81,823 USD $ 84,353 USD A P represents 2 months of purchases 1 month of bills Prop Tax Income Taxes Payable 18,633 19,613 All timing issues wash out (for simplicity) Wages Payable 42,016 44,227 Wages are two weeks Current Portion of Notes Payable 27,132 29,238 TOTAL CURRENT LIABILITIES $ 169,603 USD $ 177,432 USD Mortgage Note Payable 965,867 936,628 Building was financed Jan 1, 12 years ago at 7 5 and 80 LTV TOTAL LIABILITIES $1,135,470 USD $1,114,060 USD Common Stock $ 10,000 USD $ 10,000 USD No Par Value 10,000 shares Retained Earnings 204,428 231,513 TOTAL EQUITY $ 214,428 USD $ 241,513 USD TOTAL LIABILITIES EQUITY $1,349,897 USD $1,355,573 USD Production Data Direct Cost Total Wood Materials Foam Chem A Chem B Chem C Flame Retardent (per liter) 2 00 1 50 0 50 Coating (per liter) 25 00 7 50 2 50 15 00 Mid Grade (per unit) 140 00 80 00 40 00 20 00 High End (per unit) 250 00 160 00 60 00 30 00 Alternative Coating (per liter) 27 50 Market Price of Flame Retardent (per liter) 10 00 Liters of Flame retardent per year 62 Liters of Coating per year 311 Plant Capacity Flame Retardent 187 Coating 467 Mid Grade 5,186 High End 1,038

Question

Can you help me with this case study   Guillermon using the three capital evaluation techniques  I dont know how do the calculations portion for each technique please  A) Internal Rate of Return IRR B) Net Present Value, or NPV C) Payback Period Enter the name of the team leader for this assignment in cell A3 of the Income Information tab in the Guillermo Furniture Data Sheets  This will create a unique set of numbers for your team to analyze  Every member of your team needs to enter the same name in exactly the same way so the resulting data will be the same for each team member  Changes can be made to any of the data on the data sheet, but all changes should be documented explained within that file  The final version of the file used in the analysis needs to be submitted with the paper  Additional worksheets can be added in the file as needed to support the analysis  Differentiate among at least three capital budget evaluation techniques  Differentiation includes how the technique is computed, how the results are evaluated, what the technique measures, etc  Explain how these different techniques would help the team make its recommendation to Guillermo  Recommend a course of action (i e , which alternative Guillermo should choose) based on at least one of the capital budget evaluation techniques discussed  Be sure to apply the technique(s) to all alternatives being considered and include present value calculations as part of the recommendation  Any amounts included in the paper must be supported by relevant computations from the Guillermo Data Sheets as explained above  Submit both your paper and Data Sheets as well as any other supporting files for grading  The body of the paper should be no more than 1,100 words but should be at least 750 words  Be sure the paper complies with APA standards  no abstract is required  This is to be a formal paper, so only third person is acceptable   This paper will require the use of sources, at a minimum the Guillermo Furniture Scenario, the Guillermo Date Sheets, and the textbook  Be sure to properly cite any sources used and include a properly formatted Reference page  Income statement Setup Information   Income Statement Lisalynn Pascua 0 08 Peso  (1 Yes) 0 1 00 10 814 Mexican Pesos   1 000 US Dollars Current Hi Tech (Machines Needed) Broker (Distributor) Production Mid Grade 2,593 00 3,890 00 3,890 00 Production can be increased by 50  and the broker also anticipates that same level High End 519 00 779 00 779 00 Production can be increased by 50  Direct Materials ($) Unit Mid Grade 140 00 140 00 There are no material costs for brokered units High End 250 00 250 00 250 00 Direct Labor ($ HR) Unit 15 00 40 00 40 00 The labor rate is increased due to the technical skill level of operators Labor Time (Hrs) Unit Mid Grade 20 00 4 00 There are no labor times for brokered units and production times are 20  of original times High End 30 00 4 00 4 00 Production times are now equal to the mid grade level Direct Cost Unit Mid Grade 440 00 300 00 360 00 The Broker cost for Mid Grade is based on net FOB destination including shipping tariffs High End 700 00 410 00 410 00 Price Unit Mid Grade 509 00 459 00 459 00 Prices are reduced by 10  because supply is increased High End 879 00 789 00 789 00 Prices are reduced by 10  because supply is increased Plant Overhead Yr Wages 50,000 95,000 95,000 Need to add a 45,000 a year maintenance position for the equipment Utilities 9,000 27,000 4,505 Utilities are expected to be 3 x's current at full production (150  above current levels) based on units produced Benefits 106,145 84,204 21,964 Benefits are 10  of all wages (including direct labor) Insurance 3,000 15,000 15,000 Insurance will increase by 12,000 with the addition of the equipment and building expansion Property Taxes 975 3,900 3,900 Property taxes are 6 5 , assessment is 1  of original value, and that is on all plant equipment Depreciation 50,000 466,667 466,667 Buildings are at 30 years and Equipment is at 10 years, straight line Supplies 6,000 6,000 6,000 Supply expense is miscellaneous and does not vary Income Tax Expense 19,613 90,712 28,273 Taxes are 42  of Net Income 271,818 913,751 680,351 Net Margins 225,120 697,771 613,035 Overhead 46,698 215,980 67,316 Net Income before taxes Assets, Liabilities   Equity Information 12 31 2014 12 31 2015 Cash $ 120,872 USD $ 168,329 USD Accounts Receivable 206,184 210,392 DSO   45 days Sales growth has slowed to 1  Inventory 121,591 125,352 The plant completes all work in process before year end inventory Inflation is running at 3  Pre paid Insurance 1,250 1,500 1 2 a year pre paid TOTAL CURRENT ASSETS $ 449,897 USD $ 505,573 USD Buildings 1,500,000 1,500,000 Less  Accumulated Depreciation (600,000) (650,000) Current Building has been in use for 13 years Equipment 50,000 50,000 Less  Accumulated Depreciation (50,000) (50,000) Equipment fully depreciated several years ago TOTAL ASSETS $1,349,897 USD $1,355,573 USD Accounts Payable $ 81,823 USD $ 84,353 USD A P represents 2 months of purchases   1 month of bills   Prop Tax Income Taxes Payable 18,633 19,613 All timing issues wash out (for simplicity) Wages Payable 42,016 44,227 Wages are two weeks Current Portion of Notes Payable 27,132 29,238 TOTAL CURRENT LIABILITIES $ 169,603 USD $ 177,432 USD Mortgage Note Payable 965,867 936,628 Building was financed Jan 1, 12 years ago at 7 5  and 80  LTV TOTAL LIABILITIES $1,135,470 USD $1,114,060 USD Common Stock $ 10,000 USD $ 10,000 USD No Par Value 10,000 shares Retained Earnings 204,428 231,513 TOTAL EQUITY $ 214,428 USD $ 241,513 USD TOTAL LIABILITIES   EQUITY $1,349,897 USD $1,355,573 USD Production Data Direct Cost Total Wood Materials Foam Chem A Chem B Chem C Flame Retardent (per liter) 2 00 1 50 0 50 Coating (per liter) 25 00 7 50 2 50 15 00 Mid Grade (per unit) 140 00 80 00 40 00 20 00 High End (per unit) 250 00 160 00 60 00 30 00 Alternative Coating (per liter) 27 50 Market Price of Flame Retardent (per liter) 10 00 Liters of Flame retardent per year 62 Liters of Coating per year 311 Plant Capacity Flame Retardent 187 Coating 467 Mid Grade 5,186 High End 1,038

Accepted Answer

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Setup Information - Income Statement

Lisalynn Pascua			0.08
Peso? (1=Yes)	0		1.00	10.814 Mexican Pesos = 1.000 US Dollars



	Current	Hi-Tech (Machines Needed)	Broker (Distributor)
Production
Mid-Grade	2,593.00	3,890.00	3,890.00	Production can be increased by 50% and the broker also anticipates that same level
High-End	519.00	779.00	779.00	Production can be increased by 50%

Direct Materials ($)/Unit
Mid-Grade	140.00	140.00		There are no material costs for brokered units
High-End	250.00	250.00	250.00

Direct Labor ($/HR)/Unit	15.00	40.00	40.00	The labor rate is increased due to the technical skill level of operators

Labor Time (Hrs)/Unit
Mid-Grade	20.00	4.00		There are no labor times for brokered units and production times are 20% of original times
High-End	30.00	4.00	4.00	Production times are now equal to the mid-grade level

Direct Cost/Unit
Mid-Grade	440.00	300.00	360.00	The Broker cost for Mid-Grade is based on net FOB destination including shipping/tariffs
High-End	700.00	410.00	410.00

Price/Unit
Mid-Grade	509.00	459.00	459.00	Prices are reduced by 10% because supply is increased
High-End	879.00	789.00	789.00	Prices are reduced by 10% because supply is increased

Plant Overhead/Yr
Wages	50,000	95,000	95,000	Need to add a 45,000 a year maintenance position for the equipment
Utilities	9,000	27,000	4,505	Utilities are expected to be 3 x's current at full production (150% above current levels) based on units produced
Benefits	106,145	84,204	21,964	Benefits are 10% of all wages (including direct labor)
Insurance	3,000	15,000	15,000	Insurance will increase by 12,000 with the addition of the equipment and building expansion
Property Taxes	975	3,900	3,900	Property taxes are 6.5%, assessment is 1% of original value, and that is on all plant/equipment
Depreciation	50,000	466,667	466,667	Buildings are at 30 years and Equipment is at 10 years, straight line
Supplies	6,000	6,000	6,000	Supply expense is miscellaneous and does not vary

Income Tax Expense	19,613	90,712	28,273	Taxes are 42% of Net Income

	271,818	913,751	680,351	Net Margins
	225,120	697,771	613,035	Overhead
	46,698	215,980	67,316	Net Income before taxes

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Can you help me with this case study - Guillermon using the three capital evaluation techniques? I dont know how do the calculations portion for

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