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Pantheon Enterprises Course Computer Project Pantheon Enterprises is a well-developed large market cap high tech fimm residing in Boston Massachusetts. It specializes in the
Pantheon Enterprises Course Computer Project Pantheon Enterprises is a well-developed large market cap high tech fimm residing in Boston Massachusetts. It specializes in the development, manufacture, and licensing of a line of servers called "Rajun." Its main competitor is Cisco which therefore necessitates that Pantheon develop market niche and focus on being as efficient as possible! Considering the need to be on the cutting edge of innovation for competitive rest decided to incur $4.381.200 in research and development to promote its new product called "Tribe" and make it compatible with the balance of its product line and hence to develop in environment with increasing scale economies. Along with this, Pantheon decided to spend $2.723,700 to hire a market research firm Know--All & Associates (KIA). Initially, KIA conducted marketing tests in 62 economic zones in the US, Eastern Europe, Canada and several areas of Africa to determine an expected future sales level in both dollars and units that Pantheon world expect to realize The cost of the equipment to develop the new Tribox server is approximately $81.298,000 which will be depreciated on a five-year MACRS schedule. At the end of five years, it is expected that the remorable salvage value of the investment will be 9 percent of its original cost. Pabe con facture Trilux for which the variable costs per unit are expected to come in at $308 while overall fixed costs would be $9.856,000 per year. At this point KIA estimates that sales of Triax will be 116,000, 129,000, 145.000, 121,000, and 89,000 units respectively for the next five years with a sales price of $732 per unit. Sales of Rajun are expected to come in at 107,500, and 91,200 units respectively over the nex two years if Trilux is NOT developed. Of coune, erosion is expected if Tribus is developed as it would likely cable the original Rajun product. It is expected that Trihex would reduce Rajon sales by 31,750 units per year for the next two years sed market pressure would force the Rajus product to be discounted from its original price of $457 unit so $249Vble cost unit of Raju in $195 and fixed costs currently are $4,248,500 on an albis Working capital to support the Trilux will be approximately 21.25% of yearly sales for the life of the product which is expected to end after five years for which net working capital will be released back to Pantheon. The timing of the working capital will be exactly the same as the ch inflows which will be at the end of each yes. Lastly, the marginal corporate income tax rate is 39.675% and management dictates that the required rate of return for this project will be 15.95% You are to determine the NPV and the IRR of the project and give your recommendation to management as to whether the company should proceed with the project. In addition, you are to take the initiative and make a recommendation as to what you would reasonably change with respect to the project to make it more lucrative for Pantheon. Your presentation t be in the form of an Excel spreadbest professionally presented this means clean it up, make it flowing in its presentation, and create eye appeal! There see to be NO constant ber input which would destroy cell referencing for future use. To avoid this, you are to have a separate worksheet tab for data input that you can reference. Be careful, you will be penalized for any and all cell referencing that is destroyed. Additionally, you are to have separate worksheet tabs for Data Entry, NPV, and IRR. Do not submit your computer project early as I may come back and add requirements! Should I add a requirement-you will need a separate worksheet tab for each and every additional requirement that is assigned! When you see done, properly title and submit your work through Moodle by the deadline. If you have any questions, feel free to contact me and I will be in touch along the way...
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