Category : Financial and Statistics
Archive   : PROSPANS.ZIP
Filename : DEMO.DOC

 
Output of file : DEMO.DOC contained in archive : PROSPANS.ZIP
PRO:FIN PROJECT DEMO

NOTE: To view this demo, select DEMO on the Pro:FIN logo
screen menu line and press

The purpose pf this demonstration example is to
familiarize new users with the Pro:FIN system,
including the steps required to:

þ Create a project.

þ Enter the Project Common Data (Project name
and length, depreciation type and category,
etc.)

þ Enter the data unique to each alternative
(Alt. name and description, Capital
Investment, initial Associated Expenses, plus
the before-tax Annual Production Expense and
Net Profit Inflow from sales.)

þ Create Documentation Files and Notes Windows
 NOTE: This demo has used Pro:TEXT and
Pro:CALC (the INTAC word processor and
spreadsheet programs provided with your
Pro:FIN System) to create documentation
files. Therefore, you will be unable to
access these files if these programs are not
currently initialized by the Pro:FIN System.
However, the Project Notes (press ) and
the Alternative Notes (press ) windows
will always be available.

 þ View the ROI and NPV analysis summaries.

þ View the detailed analysis screens.

þ Print your choice of the entire project
analysis, or selected portions of same.

 KEY POINT:
In this demo all of the Project Common
Data and Alternative Data have been
entered. Therefore, simply review same to
determine where, from the information
providedin the Project Description, the
information for the entry data was found,
plus review the Project Demo Analysis.

 After this review, it is highly
recommended that (in order to gain
experience) you select on the
Pro:FIN logo screen and create a project
entitled MYDEMO. Then duplicate the
entries and analyses exampled in this
demo.

PROJECT DEMO DESCRIPTION:

The ABC Corp. is considering entering the business of
producing and selling Widgets. Three alternative production
systems to produce Widgets are available, i.e., a LOW-INVESTMENT
manual system, a MID-INVESTMENT semi-automatic system and a
HIGH-INVESTMENT automatic production system.

Due to automation, production costs will significantly
decrease as the level of investment in automation increases. The
widget market is highly price-competitive. Therefore, lowering
production costs via automation will yield two types of benefits:
1) Decreased production costs

2) Increased profits from sales, i.e., decreased production
costs allows lowering the selling price for widgets, which
will in turn greatly increase sales volumes, thereby
significantly increasing the incremental income from
sales.

NOTE: The ABC Corp. is not committed to entering the business of
producing and selling widgets, therefore this is a
non-mandatory (Discretionary) project, i.e., it it not
absolutely necessary that any funds be invested in the
project.

Therefore, the objective of the project analysis is to
determine if financial gains will be maximized by Alt. '0'
(the first Defender), i.e., by investing 'zero' funds in
the project and investing the funds 'elsewhere' and earn
the hurdle interest rate of 15%.

- - or by entering the widget business via the
LOW-INVESTMENT (the first Challenger), MID-INVESTMENT (the
second Challenger), or the HIGH-INVESTMENT (the last
Challenger) production system alternative, i.e., which, if
any, of the incremental investments in the three production
systems is best justified by the total of its incremental
benefits.

See Section 6C in the FIN/SI manuals for a discussion of the
Defender/Challenger sequence of analysis (which is automatically
executed by the Pro:FIN system).

PROJECT COMMON DATA:

Project name = DEMO, After-Tax Hurdle Rate = 15%, Project
Life = 3 years, Tax Rate = 40%, Depreciation Method =
Straight, Depreciation Category = 5. (Note: Discount %
rates may be edited.)

ALTERNATIVE DATA:
LOW-INVEST. MID-INVEST. HIGH-INVEST.
Capital Inv. $ 100 K $ 200 K $ 400 K
Associated Exp. 20 K 40 K 42 K

Prod. Exp. Yr. 1 250 K 230 K 200 K
Prod. Exp. Yr. 2 270 K 250 K 210 K
Prod. Exp. Yr. 3 300 K 270 K 220 K

Incr. Inc. Yr. 1 300 K 360 K 440 K
Incr. Inc. Yr. 2 350 K 430 K 520 K
Incr. Inc. Yr. 3 400 K 490 K 620 K

Salvage Value * * *

* Salvage value is automatically calculated to be equal to the
remaining book value at the end of the project life minus a 10%
allowance for cost of removal or sales. If necessary, the
salvage value can be edited on the Alternative Data Input
Screens.

PLEASE PRESS TO RETURN TO PRO:FIN


  3 Responses to “Category : Financial and Statistics
Archive   : PROSPANS.ZIP
Filename : DEMO.DOC

  1. Very nice! Thank you for this wonderful archive. I wonder why I found it only now. Long live the BBS file archives!

  2. This is so awesome! 😀 I’d be cool if you could download an entire archive of this at once, though.

  3. But one thing that puzzles me is the “mtswslnkmcjklsdlsbdmMICROSOFT” string. There is an article about it here. It is definitely worth a read: http://www.os2museum.com/wp/mtswslnk/