Instructions for
Feasibility Study – Based on
Selected Concepts from Managerial Accounting

1: Starting Your Own “Taco Stand”
Objective
The objective of this project is to offer you the opportunity to apply the concepts that you have learned in your managerial accounting class. You will select a simple product/service and develop a brief feasibility analysis. The analysis at a minimum will include a costing analysis, daily/weekly/monthly budgets for 1 year, a break-even analysis, and a ROI and Net Present Value calculation .
The Scenario

You just inherited some money, $100,000 to be exact. Your great-great grandma willed this money to you, under one condition – in her lifetime she was a very successful entrepreneur – that you may only use the money to start your own small business. Also, the only money you can keep is the net profit you make from your venture. In other words you may not keep any of the initial $100,000 she willed to you. Rather, after a maximum of 3-5 years, you must donate the $100,000 to a charity of your choice.

Deliverable and Interim Milestones
The deliverable will be a
1. 5-10 page paper
The paper will be single-sided, double-spaced, with 1-inch margins and 10-12 point font. Tables and graphs in the body of the paper should be included where appropriate. Other tables and graphs not included in the body of the paper should be attached as appendices or exhibits. Other paper format and content requirements are listed below.
Suggested Milestones (schedule accordingly)

1. Selection Product / Write Outline
2. Data Gathering: Cost your Product/Service*
3. Complete a daily budget and project out 1 year**
4. Complete a Break-Even Analysis based on budget above
5. Complete Write-Up
6. Deliverable prepared and submitted by due date

* You must be able to determine what is the cost per unit (variable and fixed costs per unit)
** You must first estimate your demand for your product/service based on your expected target customer base.

Paper Format
The paper should include the following sections:

Financial Analysis Project
Title Page (cover sheet) and Table of Contents [2.5 points]
Section 1: Executive Summary (1 page summarizing your findings and highlights) [5 points] << this is the last part of paper
Section 2: General Information [10 Points]
Industry/Market Information (description)
Customer Information (description of your target customer population)
Competitor Information (description of your current and potential competitors)
Product/Service Information (description of your service/product)
Sections 3-6: Technical Analysis [25 Points]
Section 3*: Cost Analysis (variable and fixed costs, per unit cost, based on your estimated production per month or year).
Section 4*: Budgets (monthly budget for 1 year, then 2-4 yearly budgets)
Section 5*: Break-Even Analysis
Section 6*: Financial Analysis (ROI/NPV) for 1-3 years (budgeted income statement and/or balance sheet)
*Sections can be as short as 1 page or as long as needed. Note that for sections 3-6, you should include the results of your analysis (from your excel work) in the body of your paper. Do not “dump” all your excel calculations into these sections. Be selective and format the information in such a way that your reader can easily understand the information you are presenting. Use the formats as provided in the chapters in the book as guidance.
Section 7*: Conclusion and Self-Reflection (1/2 to 1 pg, your thoughts on completing this project) [7.5 Points]
Appendices/Exhibits
Honor Code
You are required to abide by the Foothill College Honor Code. Therefore, plagiarism is prohibited. The work you turn in should be exclusively yours. Guidance may be requested from outside sources, but the write-up and the analysis should be no one else’s. Follow the usual annotation and bibliography guidelines. For help, go to the link above.
Grading Criteria
1. First and foremost, absolutely no copying and pasting of anyone else’s work from anywhere, including from the web.
You will earn a failing grade on the paper and possibly the course if a significant portion (10%+) of your paper is plagiarized.
2. Quality of Analysis (50%): You should use the formulas, formats, table samples, etc. in your textbook to guide your work*.
* All your computations should be presented as an exhibit/attachment to the paper. All calculations should be explained (not in the cell formulas). Use excel.
3. Quality of Writing (30%): This is not an English class, but I still look for decent presentation on the paper — I am not looking for literary type of writing. Since this is a business class, I expect concise and clear writing, in other words, get to the point and move on.
4. Presentation and Delivery (20%): You should include all the sections discussed in the Paper Format section above. I will deduct for missing parts. Make sure to include headings for each section. Use of bullet points, lists, tables highly recommended. Consider turning your product into a PDF document before submitting if you have the capability to do so.

The 5-10 page limit does not include pages for the cover sheet, index, table of contents, exhibits, appendices, etc.