10/03/2012 WED 16:38 FAX XXXXXXXXXX67th Ave & 101 DETAILED CASE ASSIGNMENTS have no page limit, although they probably shouldn't be less than six, single-spaced typed pages, excluding exhibits (e.g.,...

10/03/2012 WED 16:38 FAX 623 537 3105 67th Ave & 101
DETAILED CASE ASSIGNMENTS have no page limit, although they probably shouldn't be less than six, single-spaced typed pages, excluding exhibits (e.g., spreadsheets, tables, supporting calculations). Do not dwell on restating facts in the case. I expect you to analyze the issues and write in a mature fashion without excessive use of bullets to express yourself. Use headings to separate the various parts of the paper. Needless to say, check the grammar. Treat the assignment as a report you are submitting to top management. In summary, you should be proud of your written work.
Case: The Super Project (IBS 9-112-034)
Purpose: To examine the suitability of a company's capital budgeting system for evaluating a proposal to introduce a major new product
Suggested Questions:
1. Should test marketing expenses be included in the analysis of the Super project? 2. Should the Super project be charged for the use of the excess agglomerator and building capacity? 3. Should the Super project have to absorb a charge for overhead expenses? 4. Should the Super project be charged with the lost contribution margin on Jell-O if the project goes forward? 5. What are the relevant cash flows for General Foods to use in the Super project? 6. What is the net present value of the cash flows from the Super project, assuming a 10% discount rate? 7, What is the internal rate of return on the Super project? 8. Should General Foods invest in the Super project?
Please justify responses with calculations when appropriate.
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