Stryker Case.docx - Stryker Case Stryker corporation faced...

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Stryker CaseStryker corporation faced a situation to make a buy or make decision for PCBs due toraising supplier issues on quality and delivery. If choosing in house production, theproduction begins in 2004 with transition to manufacture all PCBs in house by 2006.There is an initial cost in year 0 (year 2003) which includes all the expected capitalexpenditure (building cost, IT cost, equipment cost and furnishings cost) and non-capitalexpenditure (architect and engineering fees, taxed at 36%). Benefit will be better controlon quality and delivery, and better credit terms. On top of these benefit, a make or buydecision will be based on capital budget analysis to see if investment on in-houseproduction will have optimal return comparing to outsourcing.Capital budget analysis steps1.Year 0 is year 2003, and Year 6 is Year 2009. There is an initial investment inyear 0 (year 2003) which includes all the expected capital expenditure (buildingcost, IT cost, equipment cost and furnishings cost) and non-capital expenditure

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Term
Spring
Professor
Bandara,W
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