A young engineer is considering establishing his own small company. An investment of Php 100,000 will be required which must be recovered in 15 years . It is estimated that sales will be Php 150,000 per year and that operating expenses will be as follows: Material Php 40,000 per year Labor Php 70,000 per year Overhead Php 10,000 + 10% of sales/year Selling expenses Php 5,000/year The young engineer will give up his regular job paying Php 150,000 per year and devote full time to the operation of the business. This will result in decreasing labor by Php 10,000 per year , material cost by Php 7000 per year, and overhead cost by Php 8000 per year. If the young engineer expects to earn at least 20% on his capital, should he invest ?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
A young engineer is considering establishing his own small company.
An investment of Php 100,000 will be required which must be recovered in 15
years . It is estimated that sales will be Php 150,000 per year and that
operating expenses will be as follows:
Material Php 40,000 per year
Labor Php 70,000 per year
Overhead Php 10,000 + 10% of sales/year
Selling expenses Php 5,000/year
The young engineer will give up his regular job paying Php 150,000 per year
and devote full time to the operation of the business. This will result in
decreasing labor by Php 10,000 per year , material cost by Php 7000 per
year, and overhead cost by Php 8000 per year. If the young engineer expects
to earn at least 20% on his capital, should he invest ?
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