If the Coat Fits, Wear It - 1268 Words

|CASE: â€Å"If the Coat Fits, Wear It† | | | EXECUTIVE SUMMARY Andy Pratt, the founder of The Innovative Sporting Goods Company, had developed a sound technique of making baseball bats and thus the company had gained a national reputation. Yet, a new machine had been developed in the industry and it makes baseball bats more durable and powerful. The ISG Company is trying to decide whether to replace the old machines with the new ones or not. Up to now the head of†¦show more content†¦So, we adjusted the cash flows for inflation. After adjustment, we conducted an NPV analysis by using the new cash flows. We reached a positive NPV, which means that the ISG Company should replace the old machines with the new ones. Replacement will enable the company to make more profits. 1- Basically we first have to find the incremental cash flows and then calculate the NPV. If the NPV is higher than zero; we are going to accept the Project. In order to find the cash flows we need to do the following steps: 1- Calculate the changes in revenues by finding sales revenue for both machines for ten years and subtract the old from the new for each year. 2- Calculate the changes in costs by subtracting the operating costs of old from the new and add them to the material, labor, general and administrative costs. (We have to calculate the material, labor, general and administrative costs although it remains constant because the $10 is per unit and unit changes year-by-year for each machines) 3- Calculate the depreciation for old and new machine and subtract the old from the new. 4- Calculate EBIT for each year by subtracting change in costs and depreciation from changes in revenues. 5- Calculate the taxes for each year by multiplying 35% with the EBIT for each year. 6- Calculate the Net Income by subtracting Taxes from EBIT. 7- Calculate theShow MoreRelatedIf the Coat Fits Wear It1282 Words   |  6 PagesSolution to Case 103 IF THE COAT FITS WEAR IT – TEACHING NOTE Questions 1. Your supervisor, Vic Gonzales, has asked you to prepare a capital budgeting report indicating whether ISGC should replace the existing machine or not. Indicate how would you proceed (without making any calculations)? I would estimate the incremental cash flows over the economic life of the new machine, taking into consideration the after-tax salvage values of the old and new machine respectively. Changes in net workingRead MoreIf the Coat Fits Wear It1273 Words   |  6 PagesSolution to Case 103 IF THE COAT FITS WEAR IT – TEACHING NOTE Questions 1. Your supervisor, Vic Gonzales, has asked you to prepare a capital budgeting report indicating whether ISGC should replace the existing machine or not. Indicate how would you proceed (without making any calculations)? I would estimate the incremental cash flows over the economic life of the new machine, taking into consideration the after-tax salvage values of the old and new machine respectively. Changes inRead MoreUniform Appearance Of The Army Uniform1441 Words   |  6 Pagesuniform should also understand that one must understand that you must meet the standards of wear and appearance that includes maintaining staying fit and maintaining proper shape as to fit the uniform properly. The Army requires an individual to keep a certain level of fitness as to maintain combat readiness and that means if your rolling around in a uniform with your gut hanging out, how can you properly wear proper protective gear such as plate carriers. In my own words if lack the proper shape andRead MoreThe Positive Effects Of Fashion Has On One s Life1363 Words   |  6 Pageshow fashion can help you fit in and find your spot. No one likes being by themselves. We all want to fit into a group or find people who sha re similarities with us, but it is not always that easy. Fashion can play a major role in helping you find where you belong. It not only gives you a way to express yourself , but it also portrays a part of you that you want other people to notice. The clothes you wear can essentially help create a community around you. If you wear a t-shirt that shows yourRead MoreCalvin Klein Essay1410 Words   |  6 Pagesexcelled in art and drawing and upon graduation went to the High School of Industrial Art. After that he attended the Fashion Institute of Technology. (Marsh) After graduating from the Fashion Institute of Technology in 1963, he worked for womens coat and suit manufacturers in Manhattans garment district before opening his own business in 1968. He did not study with any other notable designers but he relied on his childhood friend Barry Schwartz for career advice. Schwartz loaned him $10,000 inRead MoreThe Positive Effects Of Fashion On Your Life1364 Words   |  6 Pageshow fashion can help you fit in and find your spot. No one likes being by themselves. We all want to fit into a group or find people who share similarities with us, but it’s not always that easy. Fashion can play a huge role in helping you find w here you belong. It not only gives you a way to express yourself , but it also portrays a part of you that you want other people to notice. The clothes you wear can essentially help create a community around you. If you wear a t-shirt that shows yourRead MoreThe General Dress Code Follows The Principle Of Tpo1457 Words   |  6 Pagesposition, and o for the object. The â€Å"tpo† principle is about your clothes accord with the season, the place, and the identity; meanwhile, the dress should be based on different associating purposes and object. In brief, you must dress up appropriately and fits the occasion(Lee). Additionally, we have heard the phrases like â€Å"Clothes make the man† and â€Å"Dress for success†, which make dressing up so important that it would influence your life. â€Å"Lefkowitz, Blake, and Mouton (1955) had an experimenter inRead MoreSavvy Shopping Tips For Shopping Store Essay1152 Words   |  5 PagesShopping Tips to Keep You stylish, Sassy, and Solvent. Staying stylish, sassy and solvent does not have to be costly. One can still stay on trend while on a tight budget. While some people love to shop, others do not. Creating a style that perfectly fits one budget and needs is critical. One can still enjoy looking fashionable by combining some thrifted pieces with store bought items. Looking sassy does not have to be expensive. Some of the tips to consider when shopping include: Define Your StyleRead MoreHow Old Equipment from the Past Differs from Present Day Equipment1030 Words   |  4 Pagesalso firefighters use to wear a long wool fire coat, long boots, and fire helmet. John Roberts, a miner, made a mask to filter smoke from inside a smoke fill environment by 1825. (Hasenmeier). Jackets not the same firefighters wear today because firefighters never enter the structures, therefore normal clothes worn since the fighter never would come in contact with fire. The Three-quarters boots worn back then to protect the legs while the trench coat long enough to protectRead MoreHistory of Clothing778 Words   |  4 Pageswrapped around the legs as well. The length of the skirt varied depending on the fashion of the time - in the time of the Old Kingdom they were short while in the Middle Kingdom they were calf length. During the New Kingdom period it was fashionable to wear a pleated garment. Rich Egyptian men were able to afford the best quality linen which was very fine and almost see-through. Rich Egyptian men also wore as much jewelry as they could afford and decorated their clothes. They also wore headdresses for