Hello, I need help with my finance homework. Attached is the detailed question. Thanks

In this fictitious case, you are a financial analyst in the Automotive Strategy staff of Millennial Automotive Company (MAC), a global manufacturer of automotive vehicles and products. Your responsibilities include evaluating the financial and strategic implications of corporate investment decisions. Attached are relevant e-mails and data you have received from Manufacturing and Product Development. For your meeting with the Ford Finance interviewers: 1. Review the attached material and prepare a one-page executive summary that addresses the alternative strategies outlined in the series of e-mail communications. 2. Please include the following items in your summary: a. Financial analyses for each alternative you consider, as directed by Jess Greentree in her e-mail b. Your recommendation for which alternative should be chosen (if any) c. Additional information that would assist you in your evaluation of the alternatives From: Jess Greentree To: Analyst Subject: FW: New Vehicle for US Market Date: June 26, 2014 Analyst, I need your help evaluating a manufacturing sourcing decision. Millennial Automotive is investigating selling a new vehicle, the Ray, in the U.S. market. We need to determine if the Ray should be sourced locally in the U.S. by re-tooling an existing facility or by building a new plant in an emerging market. See the notes below from Product Development and the Manufacturing teams providing the program financial assumptions to use in your analysis. Please evaluate the following in your analysis: 1. Provide a profit sensitivity analysis using the range of volume projections and the variable freight cost depending on diesel fuel prices for both source locations. Assume a one period analysis. 2. At what combination of diesel prices and volume is the program profitable in each sourcing scenario? 3. What market share should we recommend for the Marketing & Sales team target? As you will see, there are trade-offs with each sourcing location option. Let me know which one you would recommend based on the available data, and please let me know what other risks or concerns you have with each alternative. Jess Greentree Manager - New Model Programs From: Les Gass To: Jess Greentree Subject: FW: New Vehicle for US Market Date: June 25, 2014 Jess, As a follow-up to my phone call, here is the data my team was able to pull together. U.S. Source: Investment $350 Million - will enable us to re-tool an existing facility where the new vehicle would be produced. Variable Labor -- $(5,000) per unit Variable Freight Costs - This is a little more complicated due to the volatility of diesel fuel prices. We've estimated the cost to be 500 gallons of diesel fuel per 10 vehicles. We can fit 10 cars on each car hauler. Emerging Market Source: Investment $575 Million - will enable us to build a new facility where the new vehicle would be produced. Variable Labor -- $(1,500) per unit Variable Freight Costs - This is a little more complicated due to the volatility of diesel fuel prices. We've estimated the cost to be 500,000 gallons of diesel fuel per 500 vehicles. We can fit 500 cars on each ocean freight carrier. The economics office has estimated that diesel cost could range between $3.75/gallon and $6.25/gallon by the time this vehicle is ready for sale in the U.S. From a Labor Affairs & Human Resources perspective, re-tooling the U.S. plant would mean new jobs in the U.S. These are new jobs that the unions would support, and this would also be positively received by the local media. If you need any more data from my team, just let me know. Les Gass Manager -- Manufacturing Finance From: Seymore Dinero To: Les Gass Subject: New Vehicle for US Market Date: June 25, 2014 Les, Per the discussion at our team meeting, we were able to pull together some data for the study of the Ray. The average material cost estimates for the new vehicle are below (all in $USD): U.S. Source -- $(14,000) / Unit Emerging Market -- $(12,000) / Unit Note that the emerging market material cost is significantly lower than the U.S. sourced vehicle since many of the parts would be sourced locally (in their local currency) around the assembly facility. While the local suppliers don't have the experience of our U.S. suppliers, they have proven they can meet our stringent specifications. Additionally, U.S. Marketing & Sales has provided a volume projection for the vehicle segment for our planned launch year which is about four years away. They also provided their market share projection given different price points. Please see their data in the attachment below and incorporate into your sourcing decision analysis. Projected Original Base Case Vehicle Segment Volume 1,500,000 Ray Market Share Projections at Various Price Points Vehicle Revenue $23,500 $23,000 $22,500 $22,000 $21,500 $21,000 $20,500 Vehicle Segment Share 7% 8% 9% 10% 11% 12% 13% Finance Homework Case 2 In this fictitious case, you continue in your role as a financial analyst in the Automotive Strategy staff of Millennial Automotive Company, a global manufacturer of automotive vehicles and products. Your responsibilities include evaluating the financial and strategic implications of corporate investment decisions. There is new information regarding the analysis you did for the first case, as outlined in the attached e-mail from Jess Greentree. 1. Review the attached material and prepare a one-page executive summary that addresses the impact of the new information. 2. Please include the following items in your summary: a. Financial impact of the new information b. Your response to Jess Greentree's request for help, based on the new information and why c. A brief discussion of additional information that would assist you in your evaluation of the alternatives From: Jess Greentree To: Analyst Subject: New Vehicle for US Market Date: July 28, 2014 Analyst, I just received some information that will have an impact on the analysis that you put together for our new vehicle (the Ray) last week. After the presentation last week that included your analysis, our leadership team decided to select the U.S. as the manufacturing location for the Ray. With this decision, our team is now considering the option of producing a second vehicle nameplate along with the Ray at the U.S. plant. Below you will find volume projections for the two vehicle segments and market share projections given different price points. As you will see below, the segment analysis and volume projections are unchanged for the Ray nameplate. However, Marketing and Sales has told us that if we introduce the new vehicle nameplate, the new vehicle will have a volume substitution impact of 20% on the Ray. You can assume variable cost inputs previously provided for the Ray are unchanged. For now, we can assume the new vehicle nameplate's variable cost inputs will be consistent with the Ray's cost inputs. Assuming that we produce the Ray and a second new vehicle nameplate at the U.S. location, I need your help to understand from a profit perspective the optimal volume and associated price point for the Ray nameplate and the optimal volume and associated price point for the new vehicle nameplate. Of course for this financial analysis you should now assume our investment required for our U.S. facility is a sunk cost. Finance Homework Case 2 In this fictitious case, you continue in your role as a financial analyst in the Automotive Strategy staff of Millennial Automotive Company, a global manufacturer of automotive vehicles and products. Your responsibilities include evaluating the financial and strategic implications of corporate investment decisions. There is new information regarding the analysis you did for the first case, as outlined in the attached e-mail from Jess Greentree. 1. Review the attached material and prepare a one-page executive summary that addresses the impact of the new information. 2. Please include the following items in your summary: a. Financial impact of the new information b. Your response to Jess Greentree's request for help, based on the new information and why c. A brief discussion of additional information that would assist you in your evaluation of the alternatives From: Jess Greentree To: Analyst Subject: New Vehicle for US Market Date: July 28, 2014 Analyst, I just received some information that will have an impact on the analysis that you put together for our new vehicle (the Ray) last week. After the presentation last week that included your analysis, our leadership team decided to select the U.S. as the manufacturing location for the Ray. With this decision, our team is now considering the option of producing a second vehicle nameplate along with the Ray at the U.S. plant. Below you will find volume projections for the two vehicle segments and market share projections given different price points. As you will see below, the segment analysis and volume projections are unchanged for the Ray nameplate. However, Marketing and Sales has told us that if we introduce the new vehicle nameplate, the new vehicle will have a volume substitution impact of 20% on the Ray. You can assume variable cost inputs previously provided for the Ray are unchanged. For now, we can assume the new vehicle nameplate's variable cost inputs will be consistent with the Ray's cost inputs. Assuming that we produce the Ray and a second new vehicle nameplate at the U.S. location, I need your help to understand from a profit perspective the optimal volume and associated price point for the Ray nameplate and the optimal volume and associated price point for the new vehicle nameplate. Of course for this financial analysis you should now assume our investment required for our U.S. facility is a sunk cost