Project General Battery Company
General Battery Company
General Battery Company (GBC) is formulating plans to open Battery Exchange Centers throughout the U.S. where All-Electric car owners can exchange batteries in one minute. This video shows an example.
GBC has developed and tested a few prototype centers in the past year at a total cost of $10,000,000. They now are seeking investors to open these throughout the U.S. over the next few years by selling franchises. This project is to prepare a proposal for one of these centers that can be presented to perspective investors. The proposal will be a five year plan to encourage readers to invest in a franchise.
Capital Investment will be initially needed for each center as follows:
Batteries: 100 * $5,000 each
Chargers: 25 at $2500 each
Transfer machines: 5 at $75,000 each
Depreciation on the capital investment is five year MACRS.
Each recharging facility is expected to generate revenue of $3,000,000 annually in the first year. This revenue per center is expected to grow by the following percentages each year.
Revenue growth %
Variable costs including utilities, labor and material costs, but excluding batteries, is estimated at 70% of the revenue.
The Land and building for each center will be leased at an annual cost of $100,000 annually.
Local administrative expense for each center is estimated at $150,000 annually.
Local Marketing is planned at $36,000 annually.
Starting in year 2, batteries and equipment will have to be refurbished at a cost of $100,000 per year.
GBC will assess each local center for its nation-wide activities. This includes such things as Corporate Administration, product research, national marketing, relationships with automakers, etc. This corporate assessment is $250,000 annually that should a line item in the S.G.&A. of each center.
Working capital of $500,000 is needed for Inventory, Accounts Payable, and Accounts Receivable. It will be increased to $500,000 in year 0, maintained at that level for years 1 through 4, and returned to zero at the end of year 5.
The value of each center if sold at the end of five years is forecasted to be $1,000,000. Consider this as the salvage value in year 5.
All tax rates are 35%
The prime evaluation measure is the internal rate of return.
The requirements are to prepare a proposal for potential investors.
Prepare a five-year Income Statements and Cash Flow Analysis
Prepare alternative scenarios that help potential investors understand the financial opportunities that the situation offers.
Prepare a MS Word document that could be distributed to potential investors that introduces the investment and presents information that an investor would likely need to seriously consider it. Include any recommendations, opportunities, or concerns. It should contain the following (the page indications are guidelines, not absolute requirements):
Cover page (1 page)
Executive summary that would encourage the reader to investigate the proposal (1 page or less)
An discussion of the investment situation (1-2 pages)
Financial analyses important to an investor (2-3 pages). These financial statements can be included in the Word document or submitted in a separate spreadsheet.
Conclusion/summary (1 paragraph)
Submit the final report.
Study Acers provides students with tutoring and help them save time, and excel in their courses. Students LOVE us!No matter what kind of essay paper you need, it is simple and secure to hire an essay writer for a price you can afford at StudyAcers. Save more time for yourself. Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more