I need help with this assignment. I need the best answer possible.

AYR Co. is considering two separate projects known as ‘Aspire’ and ‘Wolf’ which are quite different but each of which has the potential to increase AYR Co.’s market share. To date $120,000 has been spent on market research into the increase in demand that can be expected for each project. The next stage is to conduct a financial appraisal to determine which project should be taken forward as AYR Co. can only afford to fund one project at this time.

Project Aspire:

This project will require the acquisition of plant and machinery costing $2,250,000 which is payable immediately. This machinery will have a scrap value of $375,000 at the end of the 5 years. There is also $140,000 working capital to be used immediately. This amount has been taken from the company’s retained profits and will be repaid at the end of the project. Cash inflows are expected to be $650,000 in year 1 rising at a rate of 7.5% per annum for years 2 to 5 inclusive. Variable costs in year 1 are expected to be $27,000 per annum and are expected to rise at 6.75% per annum. Capital allowances are available on the plant and machinery as follows:

 $

Year 1      600,000

Year 2      390,000

 Year 3     345,000

 Year 4     300,000

 Year 5       240,000

This project will expand the current product range and will appeal to existing and potential customers.

Project Wolf:

This project will require an immediate outlay of $2,250,000. This expenditure will not attract capital allowances. Annual cash inflows of $955,000 are expected to be constant for the life of the project. Material costs are expected to be $14,400 in the first year, rising at an annual inflation rate of 7.5% per annum. Other expenses are expected to be $18,000 in year 1 and these are expected to fall by 7.5% per annum over the life of the project.

To undertake Project Wolf, factory space which is currently generating rental income will need to be used for the project. The rental income, which would not have been expected to change over the five-year period, is $75,000 per annum.

This project will take the company in a new direction appealing to a different type of customer.

Additional financial information:  Corporation tax is paid at a rate of 20% and tax is payable one year in arrears.  The weighted average cost of capital is 10% and, unless otherwise stated, cash flows occur at the end of the year to which they relate.  A straight line method of depreciation at a rate of 20% is applied to all noncurrent assets.

The initial investment of $2.250m, for whichever project is chosen, is significant in terms of value for AYR Co. The board of directors is considering ways to finance the investment, and will choose between, increasing equity by issuing new ordinary shares, or taking on new debt in the form of a bank loan at a fixed rate of interest.  

AYR Co. is currently financed as follows:

Capital Employed 

Equity holder funds $20million

 Long term debt $18million

Total 38 million

Required:

Report to the Directors of AYR Co. which includes the following. 1. A calculation of the Net Present Value (NPV), Internal Rate of Return (IRR) and Payback Period for projects Aspire and Wolf. Detailed calculations should be included as an appendix to the report. All cash flows should be rounded to the nearest $.                                                                                            30%                                                                                                                   

2. Analysis and evaluation of the investment project options as follows: i. A recommendation regarding which project (if any) to undertake; ii. Justifications for your recommendation including an evaluation of the investment appraisal techniques used in task 1 above. iii. A summary of other factors that should be considered and information that may be needed prior to making a final decision.    30%

3. A discussion of the two sources of finance being considered by the board of AYR Co. Your report should include:  

i. A description of Equity and Debt.

ii. An explanation of the costs of each source of finance.

iii. An analysis of the effect the selection of the source of finance may have on AYR Co.’s weighted average cost of capital. iv. An assessment of the impact of the selection of finance on current and potential shareholders and lenders. 30%  

Marks are available for presentation of the report, which must not exceed THREE THOUSAND words.                                                                                                               10%     

                                                                                                                             Total 100% Marking guidance

Section Weighting Criteria 1) Calculation of NPV, IRR and Payback.

2) Analysis evaluation and recommendation. Additional factors and information.

3) Discussion of two sources of finance. Impact on WACC and investors/lenders.

30%

30%

30%

Demonstrate:  Relevant practical, academic and subject specific skills  Knowledge understanding and appreciation of issues involved.  Ability to research and provide practical and relevant points  Clear communication, explanation evaluation and discussion of aspects being covered.

Report Structure and presentation

10%

 Clarity of layout, grammar, presentation and inclusion of all relevant matters  Tone and use of professional language i.e. suitable for addressee of report  Accuracy of referencing, and appropriate use of appendices

Hi, need to submit a 2250 words essay on the topic Work, people, productivity.

It will provide the history of the company and its foundations and the list of clients and partnerships. The paper will also focus on the relationship between Apple Inc. and the management style adopted by the company and its productivity. Finally, the controversies associated with the company will be briefly discussed.

Foxconn technology Group is a trading name for Hon Hai precision Industry Company limited which was founded in 1974 as a manufacturer of electrical components by Kuo Tai-Ming westernized as Terry Guo (Foxconn technology Group, 2013). Guided by the belief that electronics will be an integral part of everyday life in offices, industries and homes, Terry Guo invested approximately US$7,500 in Hon Hai. The company is a Taiwanese electronics manufacturing company with its headquarters in Tucheng, New Taipei, Taiwan (Foxconn technology Group, 2013). The company manufactures electrical connectors for computer components that have been used by several major computer manufacturing companies. Initially, the Foxconn name was only a trade name used by Hon Hai precision industry Company limited before it was later given to a subsidiary company. Hon Hai opened the first manufacturing company in mainland China in 1988 (Jay, 2004). At about this time, the company went public in the Taiwan stock exchange. it was experiencing great expansion and growth in Asia (Jay, 2004). In the mid 1990’s, the company opened research and development centres in the United States and Japan (Jay, 2004). They also started production of computer cases and within a year it was the leading manufacturer of PC cases in 1996 (Jay, 2004). In the late 1990’s Foxconn set up manufacturing plants in the United states, Ireland, Scotland and United Kingdom (Jay, 2004).

Breakthrough was seen in 2001 when the company set up a manufacturing company in the Czech Republic and took over production of Apples’ iMac computers. Additionally, it took over the production of