Question
The following is the information to construct a ROI flowchart for the Sweetwater Candy Company. Below the description is a blank flowchart that does not
The following is the information to construct a ROI flowchart for the Sweetwater Candy Company. Below the description is a blank flowchart that does not include the appropriate symbols and the appropriate labels (e.g., description, equations, actions, etc.) needed to complete the flowchart. You must answer the following 15 questions on the following page. Reminder: your symbol choices are oval, diamond, rectangle, circle, and parallelogram. Each question is worth 2 points.
The Sweetwater Candy Company is considering investing its scare financial resource on an initiative that would result in the acquisition of a new automated fudge making machine. The leadership team would like to determine what financial benefits company can expect receive by investing in this new piece of machinery. To answer this question, they are going to employ a traditional Return on Investment (ROI) process to evaluate the strategic financial benefit of this financial expenditure. This formula will compute a percentage return on the initial investment. The Vice President for Manufacturing has provided financial information that indicates the initial investment (II) associated with acquiring and installing the new machine and training the staff to use the machine will be $420,000. She has also stated that her teams best estimate on the overall expected return (ER) the company can expect to receive from the investment is $500,000. The formula used to determine the ROI (ROI) for this project is: [(Expected Return (ER) Initial Investment (II)) / Initial Investment (II)] * 100.
The Sweetwater Candy Company has a standing policy only to invest its resources in projects with and ROI that exceeds 15%. If the calculated ROI for the initiative is greater than 15%, the leadership team will approve the project. If the initiative ROI is less than 15%, the leadership team will disapprove the project.
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