Read the case and then make a proposal presentation on which project should the company choose for investment. Support your points with analysis through excel for the given figures. - Management
Read the case and then make a proposal presentation on which project should the company choose for investment. Support your points with analysis through excel for the given figures. These are the discussion items: The relevant cash flows for Sneaker 2013 and Persistence to help in the investment decision? Projected capital budgeting cash flow statement for Sneaker 2013. Projected capital budgeting cash flow statement for Persistence. NPV, IRR, payback period, discounted payback, and profitability index calculation. Final decision on which project; Sneaker 2013 or Persistence should the company choose for investment. At the end provide your recommendations. This case was prepared by Richard T. Bliss, Professor of Finance, and Mark Potter, Associate Professor of Finance, at Babson College, based on published sources. It was developed as a basis for class discussion rather than to illustrate effective or ineffective handling of an administrative situation. It is not intended to serve as an endorsement, source of primary data or illustration of effective or ineffective management. Copyright © 2014 Babson College and licensed for publication to The Case Centre. All rights reserved. No part of this publication can be reproduced, stored or transmitted in any form or by any means without prior written permission of Babson College. BAB166C NOVEMBER 2014 Sneaker 2013 The Situation It was 6:35 p.m. on a Friday as Michelle Rodriguez held her head in her hands and sought to regain focus. Her company, New Balance, based in Brighton, Massachusetts, had recently implemented a policy on work-life balance. She had just made the mistake of opening an email from the senior VP of product development, Monte Holliday, who needed a position report by Monday morning on one of New Balance’s most promising new athletic shoes. On the heels of the 2012 London Olympics, New Balance saw an opportunity in the 12- to 18-year-old male segment of the market, which their larger competitors had ignored. Established, well-known Olympic athletes like Usain Bolt already had multi-million dollar endorsement deals for athletic footwear, and they dominated the age 18 to 24 male market for running shoes.1 New Balance did not have the resources or the star power to compete in this segment. However, New Balance saw an opportunity to target a younger consumer if they could craft an effective marketing and advertising campaign around the right athlete. Holliday and New Balance CEO Jim Davis had just returned from London after holding preliminary meetings with several potential new endorsers. The most promising was a 19-year-old phenomenon from Grenada named Kirani James. By winning gold in the 400-meter dash in London, James became the first runner from outside the United States to win the event in more than three decades.2 With a winning time of 43.94 seconds, he was also the first non-U.S. runner to finish the 400 under 44 seconds. James’s victory was a huge feat for his country. Grenada had never won any Olympic medal, much less gold, and he returned home to a hero’s welcome. His relative youth, and the fact that many observers felt James was still improving, made him a likely contender for years to come. New 1 In 2010, Bolt, then 24 years old, signed a new contract with Puma that paid him $9 million annually. 2 Before James, the last non-American to win the Olympic 400 race was Russian Viktor Markin in 1980, the year the United States boycotted the Moscow Games. Distributed by The Case Centre North America Rest of the world www.thecasecentre.org t +1 781 239 5884 t +44 (0)1234 750903 All rights reserved f +1 781 239 5885 f +44 (0)1234 751125 e [email protected] e [email protected] case centre U sa ge p er m itt ed o nl y w ith in th es e pa ra m et er s ot he rw is e co nt ac t i nf [email protected] th ec as ec en tr e. or g T au gh t b y H ai de r M ad an i, fr om 1 -J an -2 02 0 to 3 0- Ju n- 20 20 . O rd er r ef F 37 51 67 . P ur ch as ed fo r us e on th e A C C T 5 10 , a t K in g F ah d U ni ve rs ity o f P et ro le um & M in er al s. E du ca tio na l m at er ia l s up pl ie d by T he C as e C en tr e C op yr ig ht e nc od ed A 76 H M -J U J9 K -P JM N 9I O rd er r ef er en ce F 37 51 67 BAB166C NOVEMBER 2014 Sneaker 2013 2 Balance saw James as the perfect athlete to appeal to a younger audience, and Davis wanted him on board. As the afterglow of the Olympic flame faded, Davis knew they needed to act quickly to capitalize on James’s new-found global fame. In spite of the economic downturn and subsequent forecasts of the demise of athletic footwear, the multi-billion dollar athletic footwear industry continued to grow steadily, if not spectacularly. A recent industry report claimed that 2012 would be the best athletic footwear market in over a decade. At the high end of the market, new high-tech shoes were coming out at a rapid pace. Air Jordan Retros, the Nike Mag Flux Capacitor, Reebok Pump Twilight Zone, and the Ewing 33 Hi were selling well. The highly anticipated LeBron Nike X Plus, due out in fall 2012 and forecast to retail for a staggering $315, incorporated technology and pressure/motion sensors that would track and store data on distance, speed, and jumping height. The shoe New Balance had designed for James was envisioned as a medium-tech, high quality running shoe at a reasonable price just under $200 retail. It would be marketed globally and had been tentatively dubbed Sneaker 2013 until a final name could be selected. The business case for Sneaker 2013 needed to be thorough and complete. It required input from sales and marketing, technology engineers, manufacturing, and finance. The data were organized and thorough, and it was up to Rodriguez to come up with a compelling analysis and a recommendation about whether to proceed. She knew her boss and the New Balance CEO were excited at the idea of Sneaker 2013 and at having Kirani James as their newest athlete endorser. But she also knew that all the excitement and flash in the world could not make up for a project if the financials did not work. Sneaker 2013 The business case team had compiled the following baseline information surrounding the Sneaker 2013 project: 1. The life of the Sneaker 2013 project was expected to be six years. Assume the analysis took place at the end of 2012. 2. The suggested retail price of the shoe was $190. Gross margins for high-end athletic footwear averaged about 40% at the retail level, meaning each pair sold would net New Balance $115. U sa ge p er m itt ed o nl y w ith in th es e pa ra m et er s ot he rw is e co nt ac t i nf [email protected] th ec as ec en tr e. or g T au gh t b y H ai de r M ad an i, fr om 1 -J an -2 02 0 to 3 0- Ju n- 20 20 . O rd er r ef F 37 51 67 . P ur ch as ed fo r us e on th e A C C T 5 10 , a t K in g F ah d U ni ve rs ity o f P et ro le um & M in er al s. E du ca tio na l m at er ia l s up pl ie d by T he C as e C en tr e C op yr ig ht e nc od ed A 76 H M -J U J9 K -P JM N 9I O rd er r ef er en ce F 37 51 67 BAB166C NOVEMBER 2014 Sneaker 2013 3 3. The global athletic footwear market in 2011 totaled approximately $74.5 billion and was expected to grow at a CAGR of 1.8% from 2011 to 2018, reaching $84.4 billion by 2018.3 Based on market research and analysis of other recent athlete endorsements, the New Balance marketing division estimated the following sales volumes for Sneaker 2013: Year 2013 2014 2015 2016 2017 2018 Pairs sold (millions) 1.2 1.6 1.4 2.4 1.8 0.9 The 2016 number assumed Kirani James participated in the 2016 games in Rio de Janeiro, Brazil, and won at least one medal.4 4. For the first two years, the introduction of Sneaker 2013 would reduce sales of existing New Balance shoes as follows: Lost sales: 2013: $35 million 2014: $15 million Assume the lost revenue had the same margins as Sneaker 2013. 5. In order to produce the shoe, the firm needed to build a factory in Vietnam. This required an immediate outlay of $150 million, to be depreciated on a 39-year MACRS5 basis. Depreciation percentages for the first six years respectively were: 2.6%, 5%, 4.7%, 4.5%, 4.3%, and 4.0%. The firm’s analysts estimated the building would be sold for $102 million at project termination. This “salvage value” has not been taken into consideration when computing annual depreciation charges.6 6. The company must immediately purchase equipment costing $15 million. Freight and installation of the equipment would cost $5 million. The cost of equipment and freight/installation was to be depreciated on a five-year MACRS basis. Depreciation percentages for the six years respectively were: 20%, 32%, 19%, 12%, 11%, and 6%. It was believed the equipment could be sold for $3 million upon project termination. 7. In order to manufacture Sneaker 2013, two of the firm’s working capital accounts were expected to increase immediately. Approximately $15 million of inventory would be needed quickly to fill the supply chain, and accounts payable were expected to increase by $5 million. By the end of 2013, the accounts receivable balance would be 8% of project revenue; the inventory balance would be 25% of the project’s variable costs; and accounts payable would be 20% of the project’s variable costs. All working capital would be recovered at the end of the project by the end of the sixth year. 8. Variable costs were expected to be 55% of revenue. 3 http://www.prnewswire.com/news-releases/global-footwear-market-is-expected-to-reach-usd-2115-billion-in- 2018-transparency-market-research-170231636.html, accessed October 2014. 4 By comparison, when Usain Bolt set the then 100-meter world record of 9.69 seconds at the 2008 Beijing Olympics, Puma sold two million pairs of his shoes in two days. http://www.moublog.com/2009/08/, accessed October 2014. 5 Modified Accelerated Cost Recovery System, the current U.S. tax depreciation method. 6 Including salvage value in depreciation computations is done for financial reporting purposes. Here, the concern is for cash flow impacts of taxes. For tax purposes, it is not necessary for firms to incorporate salvage value. U sa ge p er m itt ed o nl y w ith in th es e pa ra m et er s ot he rw is e co nt ac t i nf [email protected] th ec as ec en tr e. or g T au gh t b y H ai de r M ad an i, fr om 1 -J an -2 02 0 to 3 0- Ju n- 20 20 . O rd er r ef F 37 51 67 . P ur ch as ed fo r us e on th e A C C T 5 10 , a t K in g F ah d U ni ve rs ity o f P et ro le um & M in er al s. E du ca tio na l m at er ia l s up pl ie d by T he C as e C en tr e C op yr ig ht e nc od ed A 76 H M -J U J9 K -P JM N 9I O rd er r ef er en ce F 37 51 67 http://www.transparencymarketresearch.com/athletic-footwear-market.html BAB166C NOVEMBER 2014 Sneaker 2013 4 9. Selling, general, and administrative expenses were expected to be $7 million per year. 10. Kirani James would be paid $2 million per year for his endorsement of Sneaker 2013, with an additional $1 million Olympic bonus in 2016. 11. Other advertising and promotion costs were estimated as follows: Year 2013 2014 2015 2016 2017 2018 A&P Expense (millions) $25 $15 $10 $30 $25 $15 12. New Balance had already spent $2 million in research and development on Sneaker 2013. 13. The Sneaker 2013 project was to be financed using a combination of equity and debt. The interest costs on the debt were expected to be approximately $1.2 million per year. The New Balance discount rate for new projects such as this was 11%. 14. New Balance’s effective tax rate was 40%. Rodriguez was worried about the marketing approach for Sneaker 2013 targeting 12- to 18- year-old males. Recent market data showed the average age of athletic footwear purchasers to be just over 27 years, up from 24 three years earlier. This trend was expected to continue as the population aged. Success would depend on an effective marketing and advertising campaign which targeted not only the younger consumer, but which reached the ultimate purchaser who was more likely to be a parent. Persistence Rodriguez was still contemplating the Sneaker 2013 project when she began reviewing another proposal for a new hiking shoe being considered. The hiking shoe would be named Persistence. The hiking and active walking sector was one of the fastest growing areas of the footwear industry and one they had not yet entered. She was confident that hiking shoes would be the newest footwear trend in the coming decade. The target market for this shoe would be men and women in the 25- to 40-year-old age category. The business case for the hiking shoe needed some work; but after preliminary analysis, she focused on the following information: 1. The life of the Persistence project would be only three years, given the steep technological learning curve for this new product line. 2. The wholesale price of Persistence (net to New Balance) would be $90.00. 3. The hiking segment of the athletic shoe market was projected to reach $350 million during 2013, and it was growing at a rate of 15% per year. New Balance’s market share projections for Persistence were: 2013, 15%; 2014, 18%; and 2015, 20%. U sa ge p er m itt ed o nl y w ith in th es e pa ra m et er s ot he rw is e co nt ac t i nf [email protected] th ec as ec en tr e. or g T au gh t b y H ai de r M ad an i, fr om 1 -J an -2 02 0 to 3 0- Ju n- 20 20 . O rd er r ef F 37 51 67 . P ur ch as ed fo r us e on th e A C C T 5 10 , a t K in g F ah d U ni ve rs ity o f P et ro le um & M in er al s. E du ca tio na l m at er ia l s up pl ie d by T he C as e C en tr e C op yr ig ht e nc od ed A 76 H M -J U J9 K -P JM N 9I O rd er r ef er en ce F 37 51 67 BAB166C NOVEMBER 2014 Sneaker 2013 5 4. The firm would be able to use an idle section of one of its factories to produce the hiking shoe. A cost accountant estimated that, according to the square footage in the factory, this section’s overhead allocation would amount to $1.8 million per year. The firm would still incur these costs if the product were not undertaken. In addition, this section would remain idle for the life of the project if the Persistence project were not undertaken. 5. The firm must purchase manufacturing equipment costing $8 million. The equipment fell into the five-year MACRS depreciation category. Depreciation percentages for the first three years respectively were: 20%, 32%, and 19%. The cash outlay would be at Time 0, and depreciation would start in 2013. Analysts estimated the equipment could be sold for book value at the end of the project’s life. 6. Inventory and accounts receivable would increase by $25 million at Time 0 and would be recovered at the end of the project (2015). The accounts payable balance was projected to increase by $10 million at Time 0 and would also be recovered at the end of the project. 7. Because the firm had not yet entered the hiking shoe market, introduction of this product was not expected to impact sales of the firm’s other shoe lines. 8. Variable costs of producing the shoe were expected to be 38% of the shoe's sales. 9. General and administrative expenses for Persistence would be 12% of revenue in 2013. This would drop to 10% in 2014 and 8% in 2015. 10. The product would not have a celebrity endorser. Advertising and promotion costs would initially be $3 million in 2013, then $2 million in both 2014 and 2015. 11. The company's federal plus state marginal tax rate was 40%. 12. In order to begin immediate production of Persistence, the design technology and the manufacturing specifications for a new hiking shoe would be purchased from an outside source for $50 million. This outlay was to take place immediately and be expensed immediately for tax purposes. 13. Annual interest costs on the debt for this project would be $600,000. In addition, Rodriguez estimated the cost of capital for the hiking shoe would be 14%. U sa ge p er m itt ed o nl y w ith in th es e pa ra m et er s ot he rw is e co nt ac t i nf [email protected] th ec as ec en tr e. or g T au gh t b y H ai de r M ad an i, fr om 1 -J an -2 02 0 to 3 0- Ju n- 20 20 . O rd er r ef F 37 51 67 . P ur ch as ed fo r us e on th e A C C T 5 10 , a t K in g F ah d U ni ve rs ity o f P et ro le um & M in er al s. E du ca tio na l m at er ia l s up pl ie d by T he C as e C en tr e C op yr ig ht e nc od ed A 76 H M -J U J9 K -P JM N 9I O rd er r ef er en ce F 37 51 67
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Develop a community-wide intervention to reduce elevated blood pressure and hypertension in the State of Alabama that in in body of the report Conclusions References (8 References Minimum) *** Words count = 2000 words. *** In-Text Citations and References using Harvard style. *** In Task section I’ve chose (Economic issues in overseas contracting)" Electromagnetism w or quality improvement; it was just all part of good nursing care.  The goal for quality improvement is to monitor patient outcomes using statistics for comparison to standards of care for different diseases e a 1 to 2 slide Microsoft PowerPoint presentation on the different models of case management.  Include speaker notes... .....Describe three different models of case management. visual representations of information. They can include numbers SSAY ame workbook for all 3 milestones. You do not need to download a new copy for Milestones 2 or 3. When you submit Milestone 3 pages): Provide a description of an existing intervention in Canada making the appropriate buying decisions in an ethical and professional manner. Topic: Purchasing and Technology You read about blockchain ledger technology. Now do some additional research out on the Internet and share your URL with the rest of the class be aware of which features their competitors are opting to include so the product development teams can design similar or enhanced features to attract more of the market. The more unique low (The Top Health Industry Trends to Watch in 2015) to assist you with this discussion.         https://youtu.be/fRym_jyuBc0 Next year the $2.8 trillion U.S. healthcare industry will   finally begin to look and feel more like the rest of the business wo evidence-based primary care curriculum. Throughout your nurse practitioner program Vignette Understanding Gender Fluidity Providing Inclusive Quality Care Affirming Clinical Encounters Conclusion References Nurse Practitioner Knowledge Mechanics and word limit is unit as a guide only. The assessment may be re-attempted on two further occasions (maximum three attempts in total). All assessments must be resubmitted 3 days within receiving your unsatisfactory grade. You must clearly indicate “Re-su Trigonometry Article writing Other 5. June 29 After the components sending to the manufacturing house 1. In 1972 the Furman v. Georgia case resulted in a decision that would put action into motion. Furman was originally sentenced to death because of a murder he committed in Georgia but the court debated whether or not this was a violation of his 8th amend One of the first conflicts that would need to be investigated would be whether the human service professional followed the responsibility to client ethical standard.  While developing a relationship with client it is important to clarify that if danger or Ethical behavior is a critical topic in the workplace because the impact of it can make or break a business No matter which type of health care organization With a direct sale During the pandemic Computers are being used to monitor the spread of outbreaks in different areas of the world and with this record 3. Furman v. Georgia is a U.S Supreme Court case that resolves around the Eighth Amendments ban on cruel and unsual punishment in death penalty cases. The Furman v. Georgia case was based on Furman being convicted of murder in Georgia. Furman was caught i One major ethical conflict that may arise in my investigation is the Responsibility to Client in both Standard 3 and Standard 4 of the Ethical Standards for Human Service Professionals (2015).  Making sure we do not disclose information without consent ev 4. Identify two examples of real world problems that you have observed in your personal Summary & Evaluation: Reference & 188. Academic Search Ultimate Ethics We can mention at least one example of how the violation of ethical standards can be prevented. Many organizations promote ethical self-regulation by creating moral codes to help direct their business activities *DDB is used for the first three years For example The inbound logistics for William Instrument refer to purchase components from various electronic firms. During the purchase process William need to consider the quality and price of the components. In this case 4. A U.S. Supreme Court case known as Furman v. Georgia (1972) is a landmark case that involved Eighth Amendment’s ban of unusual and cruel punishment in death penalty cases (Furman v. Georgia (1972) With covid coming into place In my opinion with Not necessarily all home buyers are the same! When you choose to work with we buy ugly houses Baltimore & nationwide USA The ability to view ourselves from an unbiased perspective allows us to critically assess our personal strengths and weaknesses. This is an important step in the process of finding the right resources for our personal learning style. Ego and pride can be · By Day 1 of this week While you must form your answers to the questions below from our assigned reading material CliftonLarsonAllen LLP (2013) 5 The family dynamic is awkward at first since the most outgoing and straight forward person in the family in Linda Urien The most important benefit of my statistical analysis would be the accuracy with which I interpret the data. The greatest obstacle From a similar but larger point of view 4 In order to get the entire family to come back for another session I would suggest coming in on a day the restaurant is not open When seeking to identify a patient’s health condition After viewing the you tube videos on prayer Your paper must be at least two pages in length (not counting the title and reference pages) The word assimilate is negative to me. I believe everyone should learn about a country that they are going to live in. It doesnt mean that they have to believe that everything in America is better than where they came from. It means that they care enough Data collection Single Subject Chris is a social worker in a geriatric case management program located in a midsize Northeastern town. She has an MSW and is part of a team of case managers that likes to continuously improve on its practice. The team is currently using an I would start off with Linda on repeating her options for the child and going over what she is feeling with each option.  I would want to find out what she is afraid of.  I would avoid asking her any “why” questions because I want her to be in the here an Summarize the advantages and disadvantages of using an Internet site as means of collecting data for psychological research (Comp 2.1) 25.0\% Summarization of the advantages and disadvantages of using an Internet site as means of collecting data for psych Identify the type of research used in a chosen study Compose a 1 Optics effect relationship becomes more difficult—as the researcher cannot enact total control of another person even in an experimental environment. Social workers serve clients in highly complex real-world environments. Clients often implement recommended inte I think knowing more about you will allow you to be able to choose the right resources Be 4 pages in length soft MB-920 dumps review and documentation and high-quality listing pdf MB-920 braindumps also recommended and approved by Microsoft experts. The practical test g One thing you will need to do in college is learn how to find and use references. References support your ideas. College-level work must be supported by research. You are expected to do that for this paper. You will research Elaborate on any potential confounds or ethical concerns while participating in the psychological study 20.0\% Elaboration on any potential confounds or ethical concerns while participating in the psychological study is missing. Elaboration on any potenti 3 The first thing I would do in the family’s first session is develop a genogram of the family to get an idea of all the individuals who play a major role in Linda’s life. After establishing where each member is in relation to the family A Health in All Policies approach Note: The requirements outlined below correspond to the grading criteria in the scoring guide. At a minimum Chen Read Connecting Communities and Complexity: A Case Study in Creating the Conditions for Transformational Change Read Reflections on Cultural Humility Read A Basic Guide to ABCD Community Organizing Use the bolded black section and sub-section titles below to organize your paper. For each section Losinski forwarded the article on a priority basis to Mary Scott Losinksi wanted details on use of the ED at CGH. He asked the administrative resident