Final Examination (Take Home)
Case: Pepe’s Jeans
Acting as an outside consultant, what would you recommend that Pepe do? Given the data in the case, perform a financial analysis to evaluate the alternatives that you have identified. Assume that the new inventory could be valued at six weeks’ worth of the yearly cost of sales. Use a 30% inventory carrying cost rate. Calculate a payback period for each alternative. Are there other alternatives that Pepe should consider? If so, explain them fully, along with the positives and negatives of each alternative.
Hand in WITH THIS SHEET:
1. Your analysis and recommendation:
a. Your analysis must assess each alternative on the same criteria. b. Risk management and contingency plans for each alternative. 2. Payback period for each alternative
1. You may not discuss this with any other student. You may do any external research you deem necessary. 2. Your submission must be typed, single or double spaced; no more than 5 pages, excluding the title page. Put page numbers on your paper, in the lower right-hand corner. 3. Research sources should be properly cited within the text using APA format. The reference page is NOT included in the 5 pages of text. NO APPENDICES ALLOWED. Any diagrams should be embedded within the text. 4. Any pages after the fifth page WILL NOT BE READ, no matter what is on the 6th page. 5. Put your title page which includes your name, class, and date as the LAST page. 6. Deliver a hard copy of your paper to the Kelley Secretaries Office on or before 5:30pm on December 17, 2012. 7. By submitting this exam, you attest that it is solely your work and that you have neither given nor received help on this exam. 8. If I find any violations of academic integrity (cheating, plagiarism, etc.), you will receive a zero for this portion of the exam.