Posted: May 6th, 2015

Sham_Analysis

Sham_Analysis

Project description
Read the Problem 9-37.

Case Background:
provide an analysis of this problem and make a recommendation
.Write a two-page analysis according to the Business Brief Guidelines. Complete sentences must be used (bullets not acceptable). Your analysis must be written using a concise writing style. Your brief should incorporate all of following instructions:

a.An opening paragraph briefly introducing the case situation.
Note: The first half of the opening paragraph is to provide a synopsis of the company. The second half of the opening paragraph is state the problem (From Step 1 of the matrix).

b.Analysis header The analytical section should be based on your personal assessment of the financial results from the worksheet. Develop your analysis using percentages and/or relevant dollar totals/balances. This section has the highest point value and should address the following:

i.What are the relevant costs that impact the decision to keep or replace the equipment?
ii.Based on the #1 and #2 worksheets, what decision would be made in years one and two?

iii.Based on the #3 worksheet, would the decision be different for years one and two compared to the initial cost of the new equipment?
Note: Avoid the inclusion of calculations and/or explaining computations; instead refer to Appendix A. Avoid duplicating information within this section. The information for this section of brief should be derived from Steps 2 and 3 of the matrix.

c.Conclusion header This section should include your opinion based on your analysis of the case information and situation outcome. Your recommendation should address the following question and provide only key relevant information and logical discussion in support of your opinion:
i.Based solely on the worksheet information (Appendix A), should the company keep or replace the equipment? (From