<map version="0.9.0">
<!-- To view this file, download free mind mapping software FreeMind from http://freemind.sourceforge.net -->
<node CREATED="1303569621840" ID="2h6o98k7h81g5k8borl3rdc796" MODIFIED="1303570560888" STYLE="fork" TEXT="Super Project">
<node CREATED="1303569621840" ID="37nf9nu2cqdm8iciqp5aue8dc0" MODIFIED="1303570247374" POSITION="right" TEXT="Executive Summary">
<node CREATED="1303569621840" ID="0suallp2u5bq15koshf5f7bkke" MODIFIED="1303570247374" TEXT="General Foods"/>
<node CREATED="1303569621840" ID="4c6i5cuv8r7ao68rstau7t0dc9" MODIFIED="1303570247374" TEXT="Sanberg"/>
</node>
<node CREATED="1303569621840" ID="39en0t7p6qvvqootr3c9dmq9sg" MODIFIED="1303570247374" POSITION="right" TEXT="Business Opportunity">
<node CREATED="1303569621840" ID="1icmfgonu7t6a8ugn3976kmb1t" MODIFIED="1303570247374" TEXT="Super Project"/>
<node CREATED="1303569621840" ID="4gbg4r9ged02aa0o1q0mgjrlbm" MODIFIED="1303570247375" TEXT="Outline P1 (bottom) P2 in red and &quot;Market&quot;"/>
<node CREATED="1303569621840" ID="674j5g8manfss44nfinmflb0h6" MODIFIED="1303570247375" TEXT="Invest 380K to make profit?"/>
</node>
<node CREATED="1303569621840" ID="7sposktfdbns6u53e9hg73srqu" MODIFIED="1303570247375" POSITION="right" TEXT="Statement of problem">
<node CREATED="1303569621841" ID="5e3k3djde7hql96naufk5appst" MODIFIED="1303570247375" TEXT="Should GF proceed w/Super Project?"/>
</node>
<node CREATED="1303569621841" ID="03149n7nuthurauolfj0uodn61" MODIFIED="1303570247375" POSITION="right" TEXT="Alternatives">
<node CREATED="1303569621841" ID="5tnt09dagd19qupgd2g7h0aqcc" MODIFIED="1303570247375" TEXT="P13 in case">
<node CREATED="1303569621841" ID="6djbglqvqposv8sep8dof68v5j" MODIFIED="1303570247375" TEXT="Incremental Basis (Accepted version)">
<node CREATED="1303569621841" ID="79d83bre7pu752a2qbc50rd4cd" MODIFIED="1303570247375" TEXT="ROFE=63%"/>
</node>
<node CREATED="1303569621841" ID="40og5o7fclbjut197j722urt3o" MODIFIED="1303570247375" TEXT="Facilities Used Basis">
<node CREATED="1303569621841" ID="03im3hr635h30jmurgqeg1hoqh" MODIFIED="1303570247375" TEXT="Includes Sunk Costs"/>
<node CREATED="1303569621841" ID="12c4nuhtcmn45g7f3tq5potkvf" MODIFIED="1303570247375" TEXT="ROFE = 35%"/>
</node>
<node CREATED="1303569621841" ID="2dcqe7ob2bv0j2ldcbusiecvcs" MODIFIED="1303570247375" TEXT="Fully Allocated Basis">
<node CREATED="1303569621841" ID="1r89ufdl14ooi8n5hb1lj9000q" MODIFIED="1303570247376" TEXT="Will require more capital in year 5"/>
<node CREATED="1303569621841" ID="1g0eh6a8nfa26npv2c812a7scv" MODIFIED="1303570247376" TEXT="ROFE = 25%"/>
</node>
</node>
</node>
<node COLOR="#ff0000" CREATED="1303569621841" ID="7age713p2qcegghe5hccl06mf4" MODIFIED="1303570247376" POSITION="right" TEXT="Assumptions">
<node COLOR="#ff0000" CREATED="1303569621842" ID="5eb6mago1oo9lq7m6vcjnp07o5" MODIFIED="1303570247376" TEXT="Sales forecast accuracy">
<node COLOR="#ff0000" CREATED="1303569621842" ID="5amk9173nu73k6anvq5rec0q28" MODIFIED="1303570247376" TEXT="Base"/>
<node COLOR="#ff0000" CREATED="1303569621842" ID="4lv3ai70epb2np8hm6k9mqhjck" MODIFIED="1303570247376" TEXT="Best +10%"/>
<node COLOR="#ff0000" CREATED="1303569621842" ID="1o48ll2dso4qh1hktr4pj8g37f" MODIFIED="1303570247376" TEXT="Worst + 10%"/>
</node>
<node COLOR="#ff0000" CREATED="1303569621842" ID="0kmrk44p6181khll1c3rgjfc1c" MODIFIED="1303570247376" TEXT="NPV Not accepted Capital Budgeting Technique in 1967"/>
<node COLOR="#ff0000" CREATED="1303569621842" ID="2nfl5cg6tp14hd3k641h0mmpmn" MODIFIED="1303570247376" TEXT="ARR preferred"/>
<node COLOR="#ff0000" CREATED="1303569621842" ID="3d5k7jouca6nepcnlr2lm6oe3u" MODIFIED="1303570247376" TEXT="Payback Period is primary"/>
<node COLOR="#ff0000" CREATED="1303569621842" ID="5dgfif5urd1vkp66hecloquf0c" MODIFIED="1303570247376" TEXT="IRR Gaining acceptance"/>
<node COLOR="#ff0000" CREATED="1303569621842" ID="0j212n7bggd7nfqn2fkob4sdbn" MODIFIED="1303570247377" TEXT="No competing capital project realted to Jell-O facility"/>
<node COLOR="#ff0000" CREATED="1303569621842" ID="10ik9f8ja0lik9gtfm7k668247" MODIFIED="1303570247377" TEXT="Controller has strong influence over methodology &amp; policy in Capital Budgeting"/>
<node COLOR="#ff0000" CREATED="1303569621842" ID="7v06e8b3m4aa6o1b2oeti7lpe3" MODIFIED="1303570247377" TEXT="Jell-O has no "/>
<node COLOR="#ff0000" CREATED="1303569621842" ID="2dds750kgm4ssfu35b3msk471b" MODIFIED="1303570247377" TEXT="Expected sales volume will not grow beyond production capacity in current facility"/>
<node COLOR="#ff0000" CREATED="1303569621842" ID="21fmr1fl4c5cdbs9fit6u77b8b" MODIFIED="1303570247377" TEXT="Price of product is sufficient to cover fully allocated producction costs + margin"/>
<node COLOR="#ff0000" CREATED="1303569621843" ID="61v3drdq043nodonqc1ihvo0tq" MODIFIED="1303570247377" TEXT="Erosion of Jell-O will be included in financial calculations"/>
</node>
<node CREATED="1303569621843" ID="6g353he5ijj2r688bfn7m77baj" MODIFIED="1303570247377" POSITION="left" TEXT="Financial Analysis">
<node CREATED="1303569621843" ID="3klic1b6h0so98a62914ev4t8f" MODIFIED="1303570247377" TEXT="Agglomerator Capacity">
<node CREATED="1303569621843" ID="3og8ktmo402ahjo8rfg36h8eo6" MODIFIED="1303570247377" TEXT="Include">
<node CREATED="1303569621843" ID="3gi0g9fh159v919jud76epie37" MODIFIED="1303570247377" TEXT="Hooting"/>
<node CREATED="1303569621843" ID="332pv2lvmuk1is1jmk21dak02j" MODIFIED="1303570247377" TEXT="Sandberg"/>
</node>
<node CREATED="1303569621843" ID="0d780ipfvhf36p5ak6a6o3ujdb" MODIFIED="1303570247378" TEXT="Do not include">
<node CREATED="1303569621843" ID="2mnhgptnacv3fl9640t1op1sia" MODIFIED="1303570247378" TEXT="Kresslin"/>
<node CREATED="1303569621843" ID="5559k7fp871s99bnlgu9avckno" MODIFIED="1303570247378" TEXT="Corporate Standards"/>
</node>
</node>
<node CREATED="1303569621843" ID="1qs794i73953h57rv8bbaq9uir" MODIFIED="1303570247378" TEXT="Payback Period"/>
<node CREATED="1303569621843" ID="0sdsfftunoj8mt91vu3limri98" MODIFIED="1303570247378" TEXT="ARR"/>
<node CREATED="1303569621843" ID="68vjf8d4gh4gfgf9sbpe777vk9" MODIFIED="1303570247378" TEXT="IRR"/>
<node CREATED="1303569621843" ID="4bj0sqq0g3o2359lhsqvul6tqb" MODIFIED="1303570247378" TEXT="NPV"/>
<node CREATED="1303569621843" ID="12hphtrslqh6eubhfh3lu7csod" MODIFIED="1303570247378" TEXT="Profitability Index"/>
<node COLOR="#00ff00" CREATED="1303569621843" ID="2sr16gpr5clcd392lnmdr76a1n" MODIFIED="1303570247378" TEXT="Note!">
<node CREATED="1303569621843" ID="7lamvhgd3lohas4t0up3665cjc" MODIFIED="1303570247378" TEXT="Kresslin notes in last paragraph of reply">
<node CREATED="1303569621843" ID="7u2n65barjven2els9iqn18hnv" MODIFIED="1303570247378" TEXT="Fully allocated production costs must be used in determining selling prices"/>
</node>
</node>
</node>
<node CREATED="1303569621843" ID="152qhcfd529dqfdk8fkae5t1e4" MODIFIED="1303570247378" POSITION="left" TEXT="Decision">
<node CREATED="1303569621844" ID="297slaei6cubgm058h53305vmv" MODIFIED="1303570263729" TEXT="Benefits">
<node CREATED="1303569621844" ID="5soc56s3fjkvmiv80t6ickltdc" MODIFIED="1303570247379" TEXT="Investment worthy project"/>
<node CREATED="1303569621844" ID="2lgv0v8fd7jfb11qjfh61379jh" MODIFIED="1303570247379" TEXT="Doubles Powdered Dessert Category"/>
<node CREATED="1303569621844" ID="35eau2d13ms7involsag9i9nm4" MODIFIED="1303570247379" TEXT="Increases division&apos;s business"/>
</node>
<node CREATED="1303569621844" ID="6em1g94c4md0a6k8s10te1j8kc" MODIFIED="1303570247379" TEXT="Risk">
<node CREATED="1303569621844" ID="4fjnr4bm9mr6b6fci4j8shgmq0" MODIFIED="1303570247379" TEXT="Hidden costs"/>
<node CREATED="1303569621844" ID="09b9mhofakmpiopa9e359ignfa" MODIFIED="1303570247379" TEXT="Failure in Test Marketing"/>
<node CREATED="1303569621844" ID="5hjeqbtn6q3ai98rkkqil3aq3a" MODIFIED="1303570247379" TEXT="Alternative higher profit project opportunity costs"/>
</node>
<node CREATED="1303569621844" ID="41sp20489oc9g7dilk7ovvv75k" MODIFIED="1303570247379" TEXT="Strategic &amp; competitive merit"/>
</node>
<node CREATED="1303569621844" ID="0sfg8v80rk9enl7sap8hi6jie6" MODIFIED="1303570247379" POSITION="left" TEXT="Implementation">
<node CREATED="1303569621844" ID="6k24miumsofi46dcophflbdur2" MODIFIED="1303570247380" TEXT="Submit for board approval"/>
<node CREATED="1303569621844" ID="5jodqf1eh20hl9aningr61qokc" MODIFIED="1303570247380" TEXT="Test Market"/>
<node CREATED="1303569621844" ID="0mp1o6ujraji4qqmg653nb2mc5" MODIFIED="1303570247380" TEXT="Overhead expenses">
<node CREATED="1303569621844" ID="1r6irfs7fipgesgk7ekgktc529" MODIFIED="1303570247380" TEXT="Raw Materials"/>
</node>
<node CREATED="1303569621844" ID="6p6m5p17eq4oe2omdpukm31sf8" MODIFIED="1303570247380" TEXT="Marketing Plan"/>
</node>
<node CREATED="1303569621844" ID="3cfnh9r1e3paapjk9petdpmda0" MODIFIED="1303570247380" POSITION="left" TEXT="Recommendation">
<node CREATED="1303569621844" ID="16s06rs4q9d3rt12o5q61uov42" MODIFIED="1303570247380" TEXT="Yes.  Go ahead with Super project"/>
</node>
</node>
</map>
