QUALITY MANAGEMENT AND QUALITY CONTROL

Identify the following information on the selected company:

• Revenues = increasing by 8% each year —-KAROL CARDENAS
• Expenses = increasing by 10% each year ( Christine )
• Tax rate = 25% ( Christine)
• Discount rate = 10%

Part I

Compute and analyze the financial data using a Microsoft® Excel® spreadsheet. Make sure all calculations can be seen in the background of the applicable spreadsheet cells. In other words, leave an audit trail so others can see how you arrived at your calculations and analysis. Items should be submitted in Microsoft® Excel®; indicate your recommendation in the Microsoft® Excel® spreadsheet:

• Calculate the 5-year projected income. —–KAROL CARDENAS
• Calculate a 5-year projected cash flow. ( Christine )
• Calculate net present value (NPV).
• Calculate the internal rate of return (IRR).
• Determine if the team would recommend acquiring this company based on the 4 calculations above; do you recommend acquiring this company?

Identify a quantifiable measure for the company such as service time, percent of errors, etc. Select one of the following quality control tools to evaluate this data:

• Flow chart
• Cause and Effect (Fishbone) Diagram —–I VOTED FOR THIS ONE BUT WE CAN CHANGE IT IF ANY MEMBER SUGGEST ANY DIFFERENT
• Pareto Chart
• Control Charts
• Histograms ( Christine)
• Scatter Diagrams