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Title: Super Project

Essay Details:

Subject: Business
Date: February 17, 2014
Level: University
Grade: A
Length: 3 / 633

Essay text:

It would use a share of the excess capacity of Jell-O which is temporarily unused. So, the incremental cost of Super would be low. However, for a long term period, the Super project would not seem attractive anymore if the excess of Jell-O capacity did not exist. Super will disturb the production of Jell-O and need another machine investment to produce its own product. Super was expected to get a 10% share of the total dessert market. Unfortunately, it would get the 20% of the expected share market from the erosion of Jell-O sales. How did we evaluate the investment? By calculating the payback period for Super project...

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