Escola v. Coca Cola Bottling Co. Essay Business Finance Assignment Help

**Your research paper or presentation will be based on 5-6 secondary historical sources – scholarly books and articles written by professional historians.** (If these are not present and cited correctly, I will not accept the paper. The paper topic will be about the Chernobyl Nuclear Disaster in Russia in 1986. Please discuss how this happened, specific causes, human impact, environmental effect, and the impact on the economic and political situations in Russia at the time. You will also be asked to focus on a specific individual(s) who played an important role in the aftermath of the accident. The paper should be about 8-10 pages long (plus a works cited page), double-spaced, and typed in a 12 point font.

For this assignment, you will undertake an analysis based on a self-designed fictitious study that utilizes statistical methodologies. You will first develop a fictitious problem to examine – it can be anything. For example, maybe you want to look at whether scores on a standardized college placement test (like the SAT) are related to the level of income a person makes 10 years after college; Or, whether those who participate in a Leadership Training program rated as better managers compared to those who do not; Or, whether ones political affiliation is related to gender. These are just a few examples; be creative and think about what piques your interest. You might also address a problem that you may want to look at in future research for a thesis or dissertation. You will use either EXCEL or SPSS to conduct the analysis. Your analysis report should include the following components:

1. Describe your research study.
2. State a hypothesis.
3. List and explain the variables you would collect in this study. Should you design a study with just two variables, make a recommendation for a third variable and how that might add to interpretation of the data.
4. Create a fictitious data set that you will analyze. The data should have a minimum of 30 cases, but not more than 50 cases. Include the fictitious data set as part of the appendix.
5. Conduct a descriptive data analysis that includes the following:
   1. a measure of central tendency
   2. a measure of dispersion
   3. at least one graph
6. Briefly interpret the descriptive data analysis.
7. Conduct the appropriate statistical test that will answer your hypothesis. It must be a statistical test covered in this course such as regression analysis, single t-test, independent t-test, cross-tabulations, Chi-square, or One-Way ANOVA. Explain your justification for using the test based on the type of data and the level of measurement.
8. Report and interpret your findings. Use APA style and include a statement about whether you reject or fail to reject the null hypothesis. Here are some resources that will help you with APA formatting in this step:

• Reporting Statistics in APA Style
• Reporting Results of Common Statistical Tests in APA Format

Copy and paste your Excel or SPSS data output and place it in an appendix.

Remember, the goal of this project is to show what you have learned in the course. Therefore, this project becomes a cumulative learning project where you can demonstrate what you have learned through all the previous assignments, readings and video presentations that you have watched.

QUESTION 1

YourCloud Pty Ltd is a cloud-based software development company located in Brisbane. The company is planning to introduce new responsive cloud based software application into the market. In recent times, the dynamic market competition has created some bad software investment decisions. Now senior management require a thorough analysis of every new product that is introduced to market. As a senior business analyst, you have been appointed to advise the senior management on the feasibility of the new product.

An initial analysis conducted by other analysts for the product claim the anticipated net present value (NPV) for the new product line is over $2 millionand they have recommended the manufacture of the product based on this assessment.

Your taskis to use a decision support system (DSS) and report to the senior management on whether the claim of the NPV being over $2 million is correct or incorrect using the relevant information given in Table 1.

Table 1: Summarised product details

Cost of production: $25.00 per unit

Annual overhead cost: $210,000 (cloud hosting is outsourced)

Initial investment needed: $1,750,000

Estimated selling price: $55.00 per unit

Market at time of introduction: 420,000 units per year

Market growth: 15% per year

Market share: Most likely 10%

Assumed economically useful lifetime: 4 years, commencing 2018

Discount rate used to analyse new product proposals is 12%

You need to assume that the overhead and initial investment occurs at the START of the respective year, profit occurs at the END of the year and initial investment was only applicable to the first year.

YOUR TASK:

1. Develop a decision support model using Visual DSS using the variables described above. Include comments within your Visual DSS model to explain the variables and your calculations.
2. Based on the result of your model, what is the net present value (NPV)? Explain whether the claim regarding the NPV being above $2 million is correct or incorrect.

HINTS

• Note that overhead and initial investment both occur at the START of the respective year, and profit occurs at the END of the year.
• You should use the correct NPV formula in Visual DSS. Use the ‘Help’ feature within the Visual DSS application and Visual DSS tutorial to learn more about the correct NPV formula, which is applicable to the scenario, described in Question 1.
• Initial investment is a startup cost applicable to the first period only (i.e. 2018).
• The NPV is only relevant for the first period (i.e. 2018) for decision-making – so only report it for that period. Using NPV (0) in Visual DSS will allow you to achieve this.

QUESTION 2

You are now asked to analyse the variations on the impact of market share, cost of producing, overheads and initial investment on the NPV. You need to conduct a risk analysis based on the information below:

a) Market share: could be as low as 5% or as high as 15%, but is most likely to be 10%. The distribution could be represented using a triangular distribution.

b) Unit costs can be described by normal distribution – mean of $30.00 and standard deviation of $12.00.

c) Overhead: could be as low as $150,000 per year or as high as $350,000 per year, but is most likely to be $215,000 per year. The distribution could be represented using a triangular distribution.

d) Initial investment requirements can be uniformly distributed between $1,000,000 and $2,000,000.

The senior management decided on the following decision criteria:

Decision criteria: The company is unwilling to proceed if there is a 20% or greater chance that the net present value will be less than $1,000,000 (1 million).

YOUR TASK:

1. You are required to use Visual DSS to run a Monte Carlo simulation (a Risk Analysis).
2. Produce a cumulative probabilities report and graph for the above question. Based on results and the decision criteria, explain whether the senior management should accept or rejectthe proposed production of the product.

QUESTION 3

When the above analysis reached the Chief Executive Officer (CEO) of your company, he became very concerned about the assumptions made in the model. His experience has taught him to consider the uncertainty associated with selling price and production costs more thoroughly. He required further analysis to be done by incorporating the following uncertainties to Question 1 model:

He applied different decision criteria and was willing to go ahead with the product proposal if there was at least an 80% chance the net present value would be greater than $1,850,000.

YOUR TASK:

• You are required to use Visual DSS to run a Monte Carlo simulation (a Risk Analysis). Based on your results determine whether the CEO will proceed under these uncertainties.
• Produce a cumulative probabilities report and graph for the question. Based on results and the decision criteria, will the CEO accept or rejectthe proposed production of the product?

• A word document with the answers to the questions for Part A, Part B and Part C. For the second question, the screenshots can be included in the word document.
• The three Visual DSS files created for Part A (Questions 1, 2 and 3). Please ensure that these files are named clearly as Agt1_PartA_1.dss, Agt1_PartA_2.dss and Agt1_PartA_3.dss respectively. No zipfile is allowed for the submission.

Question 1

YourCloud Pty Ltd is a cloud-based software development company located in Brisbane. The company is planning to introduce new responsive cloud based software application into the market. In recent times, the dynamic market competition has created some bad software investment decisions. Now senior management require a thorough analysis of every new product that is introduced to market. As a senior business analyst, you have been appointed to advise the senior management on the feasibility of the new product.

An initial analysis conducted by other analysts for the product claim the anticipated net present value (NPV) for the new product line is over $2 millionand they have recommended the manufacture of the product based on this assessment.

Your taskis to use a decision support system (DSS) and report to the senior management on whether the claim of the NPV being over $2 million is correct or incorrect using the relevant information given in Table 1.

Table 1: Summarised product details

Cost of production: $25.00 per unit

Annual overhead cost: $210,000 (cloud hosting is outsourced)

Initial investment needed: $1,750,000

Estimated selling price: $55.00 per unit

Market at time of introduction: 420,000 units per year

Market growth: 15% per year

Market share: Most likely 10%

Assumed economically useful lifetime: 4 years, commencing 2018

Discount rate used to analyse new product proposals is 12%

You need to assume that the overhead and initial investment occurs at the START of the respective year, profit occurs at the END of the year and initial investment was only applicable to the first year.

Your task:

1. Develop a decision support model using Visual DSS using the variables described above. Include comments within your Visual DSS model to explain the variables and your calculations.
2. Based on the result of your model, what is the net present value (NPV)? Explain whether the claim regarding the NPV being above $2 million is correct or incorrect.

Hints

• Note that overhead and initial investment both occur at the START of the respective year, and profit occurs at the END of the year.
• You should use the correct NPV formula in Visual DSS. Use the ‘Help’ feature within the Visual DSS application and Visual DSS tutorial to learn more about the correct NPV formula, which is applicable to the scenario, described in Question 1.
• Initial investment is a startup cost applicable to the first period only (i.e. 2018).
• The NPV is only relevant for the first period (i.e. 2018) for decision-making – so only report it for that period. Using NPV (0) in Visual DSS will allow you to achieve this.

Question 2

You are now asked to analyse the variations on the impact of market share, cost of producing, overheads and initial investment on the NPV. You need to conduct a risk analysis based on the information below:

a) Market share: could be as low as 5% or as high as 15%, but is most likely to be 10%. The distribution could be represented using a triangular distribution.

b) Unit costs can be described by normal distribution – mean of $30.00 and standard deviation of $12.00.

c) Overhead: could be as low as $150,000 per year or as high as $350,000 per year, but is most likely to be $215,000 per year. The distribution could be represented using a triangular distribution.

d) Initial investment requirements can be uniformly distributed between $1,000,000 and $2,000,000.

The senior management decided on the following decision criteria:

Decision criteria: The company is unwilling to proceed if there is a 20% or greater chance that the net present value will be less than $1,000,000 (1 million).

Your task:

1. You are required to use Visual DSS to run a Monte Carlo simulation (a Risk Analysis).
2. Produce a cumulative probabilities report and graph for the above question. Based on results and the decision criteria, explain whether the senior management should accept or rejectthe proposed production of the product.

Question 3

When the above analysis reached the Chief Executive Officer (CEO) of your company, he became very concerned about the assumptions made in the model. His experience has taught him to consider the uncertainty associated with selling price and production costs more thoroughly. He required further analysis to be done by incorporating the following uncertainties to Question 1 model:

He applied different decision criteria and was willing to go ahead with the product proposal if there was at least an 80% chance the net present value would be greater than $1,850,000.

Your task:

• You are required to use Visual DSS to run a Monte Carlo simulation (a Risk Analysis). Based on your results determine whether the CEO will proceed under these uncertainties.
• Produce a cumulative probabilities report and graph for the question. Based on results and the decision criteria, will the CEO accept or rejectthe proposed production of the product?

• A word document with the answers to the questions for Part A, Part B and Part C. For the second question, the screenshots can be included in the word document.
• The three Visual DSS files created for Part A (Questions 1, 2 and 3). Please ensure that these files are named clearly as Agt1_PartA_1.dss, Agt1_PartA_2.dss and Agt1_PartA_3.dss respectively. No zipfile is allowed for the submission.