Please help answer. How do I give an accurate expenditure plan with such generic

ID: 2774618 • Letter: P

Question

Please help answer. How do I give an accurate expenditure plan with such generic information PPA602?

You are in the role of a chief operating officer. A board of directors has requested that you prepare a summary of the issues involved in a $50 million expansion. Because of local political and uncertain national financial policy of the to-be-elected national officials they may have to scale the expansion back to $25 million. Prepare a report for the mayor and city council on your proposed expenditure plan

Explanation / Answer

Proposal for Mayor

The Board of directors of our company want to expand the business in the state by $50 billion. The plan for $ 50 billion is as follows

Expenditure plan

In$ Million

Cost of land acquisition for the project

Construction of Factory and building

Purchase of new Machinery

Cost of Approvals from various government departments

Commission of Power for the building

Water Supply

Wages for new employees employed in the 1st year

Testing the facility

Appreciation in Cost

Buffer for additional miscellaneous Expenses

Total

However, due to political and uncertain national policy, we are forced to scale down the facility by half to only $25 million. Hence we would need to halve all our expenditures. Therefore, kindly approve the original plan