Essay about R.K.T. Case

1283 WordsJan 18, 20136 Pages
UNIVERSITY OF LA VERNE La Verne, California ROAD KING TRUCKS CASE ANALYSIS BUS 500D: Business Finance Gong Chen MBA Program March 2, 2012 Abstract The main purpose of this paper is to have a brief analysis and evaluation on the project provided by Road King Trucks Company. Six main problems offered are the main topics in this paper. After evaluation, a recommendation will put out to choose the right engine and on the project. Road King Trucks Case Analysis Summary results and recommendations After these analyses based on the data provided, the project held by Road King Trucks should accept. There are some reasons to hold…show more content…
As the price of the oil never goes down, the efficiency of using oil is much important for us to consider. In addition, customers always like to use a truck with much better horsepower and less oil. No one likes to spend more on the same horsepower. Therefore, they find other ways than money to make their car run faster. Levi Quinn provided several suggestions for the customers to gain more horsepower. Lubricants, upgrade ignition system, give your engine some breathing room, keep engine cool (Levi Quinn, 2007). Based on this, it will draw more attentions form the customers if a truck company provide a truck system more efficient than others, or just provide attractions for customers, for example to help a lecture about how to protect trucks tire. What Transportation Secretary Ray LaHood says in 2010 states this idea, “When people complain, we investigate.” What are the project’s cash flows for the next twenty years? What assumptions did you use? The project’s cash flows for the next twenty years is on the spreadsheet. The assumptions I use is as follows. * I use the forecasted average inflation per year through the whole calculation of 23 years, which will differ from the real world rate. * The numbers are based on the experience, no emergency is considered in this project. * The debt ratio is 0.4 historically, which is also should be 0.4 in the following years under the hard work of Road King Trucks. * I use

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