ADAMAC Inc. An Analysis of Production and Cost Theory
Group III Osvald Ronald David Tjahjo
Agenda • • • • Company’s Overview Current Issues Case Analysis Recommendation
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Overview of Adamac Inc. • Provide services of jet cutting (laser, water jet, wire) built by Ryan Olliver and Ben Watts, previously worked for Perts • Adamac was built with an objective to provide more efficient and higher customer service • Adamac had started with used water jet, used laser cut machine, and wire cutter machine
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Partnership and Organization • Ryan Olliver and Ben Watts were the key players on the company with Mike Degena act as landlord and became the third person on the partnership • Currently Adamac employed 8 people –…show more content… 46,500 98,000 120,000 551,946.45 163,578.74 30,723.81 132,854.93 179,355 146,116 23,608 142,426 12,206 46,500 98,000 120,000 419,132.27 312,123.27 58,623.86 253,499.41 299,999 446,115 227,782 1,336,555 259,388 735,105 $ 142,663 46,500 98,000 120,000 407,163.27 327,941.81 61,594.94 266,346.87 312,847 758,962 424,929 1,322,355 258,217 727,295 $ 142,019 46,500 98,000 120,000 406,519.46 320,775.81 60,249.00 260,526.81 307,027 1,065,989 604,076 1,329,488 258,854 731,219 $ 142,370 46,500 98,000 120,000 406,869.67 324,348.95 60,920.12 263,428.83 309,929 1,375,918 771,521 1,329,466 258,820 731,206 $ 142,351 46,500 98,000 120,000 406,850.80 324,355.53 60,921.36 263,434.17 309,934 1,685,852 926,565 1,327,103 258,630 729,907 142,247 46,500 98,000 120,000 406,746.64 323,160.10 60,696.83 262,463.27 308,963 1,994,815 1,069,675
18.78%
(500,000) (500,000) (500,000)
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Alternative 3: Buy Two Jet Cutters YEAR 0 2009 1 2010 2 2011 3 2012 4 2013 5 2014 6 2015 7 2016 8 2017 9 2018 10 Initial Investment 1 Gross Revenue 2 COGS Add'l revenue Less: COGS Loan down payment 4 Loan repayment Depreciation Additional workers Land square required Moving cost 5 Operating Expenses Total Expenses Net Income Before Tax Income Tax Net Income After Tax After Tax Cash Flow ATCF Cummulative ATCF NPV through Year N 3
