Economics Homework Help
Economics Homework Help. Executive Summary
Problem Description
Your client, Heidari, Incorporated, is going to build a new wind turbine manufacturing facility. Heidari, Inc. is a multinational corporation based in Des Moines, Iowa United States. The budget for completing the facility and purchasing and installing the machinery is estimated to be $3.9 million (assume $3 million for the facility and $900,000 for machinery). It will have a net annual income cash flow of $850,000 for the next 10 years (gross income before taxes). Initially, they were planning to locate the facility near their US headquarters location where their total incremental tax rate would be 33% (21% Federal and 12% State). However, they have been approached by the Danish government and want to evaluate the option of building the facility in Denmark against their original plan of building in the US. Assume that the interest rate is 8% per year (or MARR for both countries). You will need to research tax methods and depreciation rules in Denmark and compare with those of the US.
Your consulting firm, [Your name] Consulting, has been hired to complete an evaluation and make a recommendation for where to build the plant. As part of your initial engineering economic analysis for this problem, you must examine global political, environmental, and social considerations that contribute to responsible and ethical engineering problem-solving, and that might affect Heidari’s reputation and the operation and profitability of the plant.
Additionally, you will complete a financial analysis using a calculation of the after-tax present worth of adding the new manufacturing facility in each of the two countries (Denmark and the United States). You will need to research tax methods and depreciation rules in Denmark and compare what you find with those of the US. Use these results to recommend where to make the investment.
The final step of your project will be to write an Executive Summary. You will make a recommendation for plant location, and you will justify your recommendation using the cultural/social, political, environmental, and economic research and analysis that you conducted throughout the semester.
See Attachment for help
Preparation
To prepare for this assignment, you must:
- have completed your independent/individual tax analysis
- read or revisit the Executive (PDF) and Executive Summary (PDF) sections of The Engineering Communication Manual provided for you
- consider all four aspects of plant location decision making examined throughout the semester together: social/cultural, environmental, political, and economic
- determine what your final recommendation
- be able to understand and clearly articulate the justifications for your recommendation
Purpose
The communication assignments in this course aim to develop communication skills that students will need in their professional lives. Students will study, analyze, and synthesize information and research through independent and group learning contexts, and will use both oral and written communication to do this work. Through these assignments, students will develop skills that will help them excel in their professional endeavors. Targeted skills include: argumentation; analysis; organization; presentation skills; and small group and interpersonal communication skills.
Goals
This assignment has three goals:
- to include tax analysis in your final recommendation
- synthesize the research you and your team have conducted related to plant location decision making throughout the semester
- make a case for your recommendation
Objectives
The objectives of this assignment include: organization; argument building; making a case
Requirements
For this assignment, you must first complete your tax analysis. Then, you must synthesize the social/cultural, political, environmental, and tax analysis aspects that you and your team have researched throughout the semester. You will present your recommendation and overall justifications in an Executive Summary, written for an executive audience.
Your summary must meet the following requirements:
- The summary must be written to an executive audience
- Your document must appear professional and be visually easy to navigate, including:
- headings and subheadings as appropriate
- bullet points as appropriate
- (note: bullet points are not required, but many students asked about whether or not they could be included, and my answer was, and still is, “yes, bullet points may be included as appropriate, but should never be used in place of adequate detail”)
- excellent organization
- reasonable and thoughtful use of spacing and margins
- attention to formatting that communicates professionalism, pride of work, and respect for the reader
- Spacing: You may use single spacing, OR you may customize your spacing by selecting “Exactly” in the line spacing drop-down menu and use up to 16pt spacing. Use your own judgment and aesthetic preferences to determine your spacing choices, but be consistent.
- You must equitably address all four factors you were asked to consider for this assignment: cultural/social, environmental, political, and economic factors.
- Synthesize information for your reader; show them the connections you want them to understand. Always demonstrate for your reader how they should connect the information you are providing for them
- Never assume that readers will make the same connections you have made, or that you want them to make, without your guidance.
- Include an appendix with a graph and explanation of your economic analysis. The graph must be clearly labeled and include a description that will help your audience understand the significance of the graph.
- The appendix must be part of the document, but will appear on its own page.
- Use the “Page Break” function to create a separate page for your appendix.
- Your recommendation must be clear and direct. It should appear in the introductory section of your summary. Remember, you’re not writing a mystery. Your executive audience wants you to be clear and direct, with thoughtful and well-developed justifications.
- Your summary must include the elements of an introduction, body, and conclusion, but must use specific, professional terminology for those sections. Remember: An executive summary is not an academic paper.
- Your summary should be approximately 2 – 2.5 pages of writing, not including relevant visual aids (such as charts, graphs, and figures that will aid your justifications), and your appendix, which will make the page count longer.
- Your submission will be at least 3 pages in total with the inclusion of your appendix
- Your submission might be up to 5 pages if you also include visual aids such as charts, graphs, or figures in the body of your summary
- Visual aids in the body of your summary are not required. However, you may find that some charts, graphs, or figures may help clarify your justification, in which case you should use them. However, you must not use visual aids in place of providing sufficient explanations or justifications.
- Visual aids must aid your explanations and justifications, not replace them.
Rubric
Econ Exec Summary Rubric
Criteria | Ratings | Pts | |||||
---|---|---|---|---|---|---|---|
This criterion is linked to a Learning OutcomeAudienceThe student has used tone and wording in their summary that is appropriate for an executive audience. |
|
5.0 pts |
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This criterion is linked to a Learning OutcomeVisual OrganizationThe student has developed a well organized and visually easy to navigate document appropriate for a busy executive audience. |
|
5.0 pts |
|||||
This criterion is linked to a Learning OutcomeTopicsThe student has addressed all four factors studied throughout the semester: cultural/social, environmental, political, and tax analysis. The factors are given more or less equitable attention, with the understanding that one or two factors may be of more importance to the decision and thus require a little more space. |
|
5.0 pts |
|||||
This criterion is linked to a Learning OutcomeTax Analysis Appendix and GraphsThe student has included an appendix or appendices with their tax analysis, including graphs and an explanation of the significance of their findings. |
|
10.0 pts |
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This criterion is linked to a Learning OutcomeContent OrganizationThe student has organized their work logically. |
|
5.0 pts |
|||||
This criterion is linked to a Learning OutcomeRecommendationYour recommendation is clear and direct, and is offered toward the beginning of the document. |
|
10.0 pts |
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Total Points: 40.0 |