HOME | BLOG | SEARCH | SITE MAP
Custom Search


How to Write a Resume

Homework 1 - Financial Analysis

Background

You are the Engineering Manager for XYZ Company. You have two proposals on your desk for capital equipment to improve productivity. Both proposals are from engineering teams that work for you.

The first proposal concerns improvements in productivity for product A. Your team says that their proposed equipment can improve productivity and thereby reduce variable costs per unit by 10 percent and increase the production volume by 25 percent. Sales can sell all of the additional volume of product A at the current price. The cost for the equipment is $1,000,000.

The second proposal concerns improvements in productivity for product B. Your other team says that their proposed equipment can improve productivity and thereby reduce variable costs per unit by 5 percent and increase the production volume by 30%. Sales can sell all of the additional volume of product B at the current price. The cost for the equipment is $1,000,000.

Your capital budget is $1,000,000 so you can only do one of the projects. XYZ Company is small so you must do the financial analysis yourself. You have the following 2005 actual figures to use for your projections. (Assume that the benefits will accrue for all of 2006).






Business key words: business financial statement analysis, engineering management, productivity, six sigma, budgeting, project finance, cost and schedule, optimization, equipment cost, overhead, internal figures.


Home | Search | Blog | Site Index | Contact Us
Terms & Conditions of Use | Copyright 2007-2010. All Rights Reserved.
ELECTRICAL ENGINEERING | BUSINESS | PHYSICS | CHEMISTRY | REFERENCES