10' NAME--MAKE-BUY 20' 30' DESCRIPTION--MAKE OR BUY DECISION 40' 50' SOURCE--UNKNOWN 60' 70' INSTRUCTIONS--INPUT THE NAME OF THE COMPONENT UNDER CONSIDERATION 71' (FIRST QUESTION) IN THE SINGULAR (NOT THE PLURAL). 80' 90' THIS PROGRAM WAS WRITTEN FOR STUDENT USE AT AMOS TUCK SCHOOL 91' OF HANOVER, N.H. WHICH DOES NOT ASSUME RESPONSIBILITY FOR 92' ITS ACCURACY. 100' 110' * * * * * * * * * MAIN PROGRAM * * * * * * * * * * * * * 120' 400' INITIALIZATION 405 LET Y1=0 ' UPPER LIMIT PLOT ROUTINE 406 DEF FNP(C,X) ' LINE UP DECIMAL AND TRUNCATE TO 2 PLACES 410 LET X=(INT((X*100)+.5))/(100) 411 LET FNP=C-2 412 IF ABS(X)<1 THEN 414 413 LET FNP=FNP-INT((LOG(ABS(X))+5E-7)/LOG(10)) 414 PRINT TAB(FNP); 415 LET FNP=X 416 FNEND 420 DIM A(25) 421 DIM B(25) 422 DIM C(25) 424 DIM D(25) 430 LET C2=0 431 LET C8=0 450 ' I.D. ROUTINE ***************************************************: 451 PRINT " " 455 PRINT 457 PRINT 500 ' LINES 500-700 ARE THE INPUT ROUTINE ******************************: 510 PRINT " THIS PROGRAM CALCULATES THE PRESENT VALUE OF THE COST "; 511 PRINT "SAVING INCURRED BY MAKING A PRODUCT AS OPPOSED TO BUYING "; 512 PRINT "IT." 515 PRINT 516 PRINT "FIRST I WOULD LIKE TO ASK YOU A FEW QUESTIONS..." 517 PRINT 518 PRINT 519 PRINT " WHAT IS THE NAME OF YOUR COMPANY"; 521 PRINT 522 PRINT " WHAT IS THE NAME OF THE COMPONENT YOU ARE CONSIDERING" 523 PRINT "MAKING OR BUYING"; 524 INPUT I$ 525 PRINT 526 PRINT "*** ENTER ALL COSTS IN DOLLARS ***" 527 PRINT 530 PRINT " 1. WHAT IS THE COST TO BUY A ";I$;" FOB" 531 PRINT "YOUR PLANT"; 533 INPUT I1 539 PRINT 540 PRINT " 2. WHAT IS THE COST TO MANUFACTURE A ";I$;" IN YOUR PLANT "; 541 PRINT "INCLUDING DIRECT MATERIALS AND LABOR BUT NOT OVERHEAD"; 543 INPUT I2 549 PRINT 550 PRINT " 3. WHAT IS THE INITIAL INVESTMENT (COST OF THE EXTRA "; 551 PRINT "MACHINERY THAT WOULD BE NEEDED IF YOU WERE GOING TO" 552 PRINT "MANUFACTURE ";I$;"S)"; 553 INPUT I3 559 PRINT 560 PRINT " 4. WHAT IS THE LIFE OF THE INVESTMENT IN YEARS"; 563 INPUT I4 565 GO SUB 5000 ' INVESTMENT TAX CREDIT 569 PRINT 570 PRINT " 5. WHAT IS THE SALVAGE VALUE OF THIS INVESTMENT"; 573 INPUT I5 574 LET C(I4)=-I5 579 PRINT 580 PRINT " 6. SUM-OF-THE-YEARS-DIGITS METHOD WILL BE USED TO "; 581 PRINT "DEPRECIATE THE INVESTMENT." 583 LET S4=0 ' SUM OF YEARS DIGITS ROUTINE 584 FOR S5=1 TO I4 585 LET S4=S4+S5 586 NEXT S5 589 PRINT 590 PRINT " 7. WHAT ARE THE ANNUAL FIXED COSTS (SUCH AS SUPERVISION "; 591 PRINT "AND MAINTENANCE) INVOLVED IN YOUR MAKING "; 592 PRINT I$;"S"; 593 INPUT I7 599 PRINT 600 PRINT " 8. WHAT IS YOUR CORPORATE TAX RATE IN PERCENT"; 603 INPUT I8 604 LET S1=I8 605 GO SUB 650 606 IF S2=1 THEN 600 607 LET I8=I8/100 609 PRINT 610 PRINT " 9. WHAT IS THE LOCAL TAX RATE ON THE EXTRA " 611 PRINT "INVESTMENT IN DOLLARS PER THOUSAND"; 613 INPUT I9 614 LET I9=I9/1000 619 PRINT 620 PRINT " 10 WHAT IS YOUR COST OF CAPITAL IN PERCENT"; 623 INPUT J1 624 LET S1=J1 625 GO SUB 650 626 IF S2=1 THEN 620 627 LET J1=J1/100 629 PRINT 630 PRINT " 11 WHAT IS YOUR ESTIMATE OF THE YEARLY DEMAND FOR ";I$;"S"; 633 INPUT J2 649 GO TO 700 650 ' PERCENTAGE CHECK SUBROUTINE ************************************ 653 IF S1>1 THEN 659 654 IF S1=0 THEN 659 655 PRINT "PLEASE GIVE YOUR ANSWER IN PERCENT." 657 LET S2=1 658 GO TO 660 659 LET S2=2 660 RETURN 700 'CONTINUE 703 LET D(0)=C7=D1 706 LET D(I4)=-I5*(1-I8) 710 FOR A=1 TO (I4-1) 711 LET C(A)=D(A)=0 712 NEXT A 1000 ' EXECUTIVE ROUTINE 1010 FOR A = 1 TO I4 ' TIME LOOP 1015 LET C6=(1+J1)^(A) ' INTEREST FACTOR 1020 LET A(A)=I1*J2 'COST TO BUY 1030 LET B(A)=A(A)*(1-I8) 'DITTO - POST TAX 1033 LET C5=B(A)/C6 1036 LET C8=C8+C5 ' SUM OF PRESENT VALUE 1040 GO SUB 5200 ' DEPRECIATION 1050 LET C3=(I3-C2)*I9 ' STATE TAX 1060 LET C4=(I2*J2)+I7+C3 ' YEARLY MFG COST 1070 LET C(A)=C4+C1+C(A) 1080 LET D(A)=(C4*(1-I8))-(C1*I8)+D(A) 1090 LET C5=D(A)/C6 ' PRESENT VLAUE MFG. 1100 LET C7=C7+C5 ' SUM OF PV MFG 1200 NEXT A 1201 ' PRINT OUT ROUTINE 1203 PRINT 1205 PRINT "**********************************************************" 1207 PRINT 1210 PRINT "THE PRESENT VALUE OF THE COST TO MAKE IS ";C7 1220 PRINT "THE PRESENT VALUE OF THE COST TO BUY IS ";C8 1230 PRINT 1235 LET C9=ABS(C8-C7) 1240 ON SGN(C8-C7)+2 GO TO 1250,1290,1270 1250 LET C$="BUY" 1260 GO TO 1280 1270 LET C$="MAKE" 1280 PRINT D$;" SHOULD ";C$;" ";I$; 1281 PRINT "S AT A SAVINGS OF ";C9;" DOLLARS." 1288 PRINT 1289 PRINT 1290 IF A1=1 THEN 2100 1291 PRINT " **** THE FLOWS ****" 1294 PRINT 1295 PRINT TAB(10);"IF BUY**********"; 1300 PRINT TAB(38);"IF MAKE*********"; 1310 PRINT TAB(62);"***NET***" 1320 PRINT "YEAR"; 1330 PRINT TAB(8);"EXPENSE"; 1340 PRINT TAB(20);"CASH FLOW"; 1350 PRINT TAB(36);"EXPENSE"; 1360 PRINT TAB (48);"CASH FLOW"; 1370 PRINT TAB(62);"CASH FLOW" 1400 FOR A=0 TO I4 1410 PRINT A;FNP(12,A(A)); 1420 PRINT FNP(24,B(A)); 1430 PRINT FNP(40,C(A)); 1440 PRINT FNP(52,D(A)); 1450 LET S7=B(A)-D(A) 1460 PRINT FNP(66,S7) 1480 NEXT A 2000 ' SENSITIVITY CHECK 2001 PRINT 2002 PRINT "--------------------------------------------------------------" 2003 PRINT 2010 PRINT "WOULD YOU LIKE TO SEE THE EFFECT OF CHANGING " 2011 PRINT " A VARIABLE ( YES OR NO)"; 2020 INPUT A$ 2030 IF A$="NO" THEN 99999 2040 LET A1=1 ' FLAG 2050 PRINT "WHAT IS THE NUMBER OF THE QUESTION TO WHICH YOU " 2051 PRINT " WOULD LIKE TO CHANGE YOUR ANSWER"; 2060 INPUT A2 2070 PRINT "WHAT IS THE NEW VALUE"; 2080 INPUT A3 2090 GO TO 2180 2100 PRINT "MORE CHANGES"; 2110 INPUT A$ 2120 IF A$="NO" THEN 99999 2130 PRINT "SAME QUESTION"; 2140 INPUT A2$ 2150 IF A2$="NO" THEN 2050 2160 PRINT "NEW VALUE"; 2170 INPUT A3 2180 ONA2GOTO2190,2200,2210,2220,2230,2240,2250,2260,2270,2280,2290 2190 LET I1=A3 2195 GO TO 2300 2200 LET I2=A3 2205 GO TO 2300 2210 LET I3=A3 2215 GO TO 2300 2220 LET I4=A3 2221 GO SUB 5000 2222 LET C(0)=I3 2224 LET S4=0 ' SUM OF DIDITS 2225 FOR S5=1 TO I4 2226 LET S4=S4+S5 2227 NEXT S5 2230 LET I5=A3 2231 LET C(I4)=-I5 2235 GO TO 2300 2240 LET I6=A3 2245 GO TO 2300 2250 LET I7=A3 2255 GO TO 2300 2260 LET I8=A3/100 2265 GO TO 2300 2270 LET I9=A3/1000 2275 GO TO 2300 2280 LET J1=A3/100 2285 GO TO 2300 2290 LET J2=A3 2300 LET C2=C8=0 4949 STOP 4950 ' SUB ROUTINE INDEX 4955 ' 5000-5130 INCESTMENT TAX CREDIT 4960 '5200-5230 DEPRECIATION 5000 ' INVESTMENT TAX CREDIT 5020 IF I4>=4 THEN 5050 5030 LET S3=0 5040 GO TO 5120 5050 IF I4>=6 THEN 5080 5060 PRINT R$;R$;R$;R$ 5070 GO TO 5120 5080 IF I4>=8 THEN 5110 5090 LET S3=(2/3)*.07*I3 5100 GO TO 5120 5110 LET S3=.07*I3 5120 LET D1=I3-S3 5130 RETURN 5200 ' DEPRECIATION SUB-ROUTINE 5210 LET S6=I3-I5 ' DEPRECIABLE INVESTMENT 5220 LET C1=S6*((I4+1-A)/S4)'AMT OF DEPR. 5230 LET C2=C2+C1 ' ACCUNILATE DEPR. 5240 RETURN 6000 ' RUB-OUT SUBROUTINE - 6010 FOR I=1 TO 9 6020 READ R(I) 6030 NEXT I 6040 DATA 9,127,127,127,127,127,127,127,127,127 6050 CHANGER TO R$ 99999 END