Here is the synopsis of our sample research paper on Should Crafty Motors Expand?. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
A 14 page paper assessing the monetary implications of proposed expansion of an automotive body shop. The owner intends to retire after ten years and will sell the business at the end of that term. For the present, she needs to determine: (1) whether the expansion can be profitable; and (2) how she should finance it. These determinations cannot be made without assessing costs in terms of present and future dollars. It is necessary to assess the proposed project in terms of total net present value in order to predict profitability and compare the implications of financing decisions. Two appendices contain NPV calculations for expansion at 14, 20 and 25 percent discount rates as well as NPV determination for total cost of loan and lease financing options. The paper concludes that Crafty should expand, using loan proceeds if the economic climate is strong, cash if it is not. Bibliography lists 2 sources.
Page Count:
14 pages (~225 words per page)
File: CC6_KSacctCrafty.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
is an automotive body shop currently operating with seven stalls in a leased building. The owner, Chris Craft, seeks to determine if pursuing expansion at a different location would
be profitable for the business. She intends to retire after ten years and will sell the business at the end of that term. For the present, she needs
to determine: (1) whether the expansion can be profitable; and (2) how she should finance it. These determinations cannot be made without assessing
costs in terms of present and future dollars. It is necessary to assess the proposed project in terms of total net present value in order to predict profitability and
compare the implications of financing decisions. Crafty should expand, using loan proceeds if the economic climate is strong, cash if it is not.
Assessing the Project Construction of the New Facility Potential Return Ms. Craft needs to consider all of these factors: * Initial cash outlay;
* Potential annual return; * Disposal values; and * Net present value of the total project. Initial Cash Outlay The new facility
will consist of 1,400 m2, at a construction cost of $1,022,000. Land cost is high at $340,000 per hectare, but Crafty Motors will need to ensure that there is
ample space for parking for a variety of purposes: work waiting for the body shop personnel, customer traffic (there will be two cars for each customer at various times),
employee parking and insurance adjuster parking. Since Ms. Craft wants to provide office space for insurance adjusters, she also will need to provide parking space for them that does
...