QUESTIO Medical Equipment Supplies Inc. (MESI) has lost 16% market share in Medical Equipment sales in 2018. MESI serves more than 24,800 B2B clients and operates on a North Central Positronics System that is not compatible with the systems used by their major clients Shopper’s Drug Mart and Loblaw’s who have all upgraded to a reputable Microsoft Platform. A project to upgrade their systems is being considered. The estimated total upgrade will take place over the Jan — December 2022 period and payback of the project will be measured over a 4-year life. The loan of $838,000 is taken from the Royal Ontario Bank at a rate of 7.5% and estimates are that revenues of $295,000 in year 1, $204,000 in year 2, and a maximum amount of $300,000 in each of the years remaining in the period. The project estimates also include the sale of older equipment for $35,000 as scrap. Create an analysis of the Project Value to MESI and give reasons for whether this project should be accepted or not using three Methods of Evaluation: NPV, BCR and Payback. A) CALCULATIONS: (2 POINTS) Justify your answer providing 3 reasons for your position. B) JUSTIFICATION: (3 POINTS) BDC Corporation is using the weighted scoring model to select one project out of four projects. The measurement criteria and ratings of Five projects are given below based on their strategic requirements. Which of the following project(s) will be selected and why? |Criteria Weight |Project ATN |Project BRB |Project CAN |Project DAM |Project EGG [Time to Market 15% 60 12 25 45 10
