Aufgabe Vorschlag A - Aufgabe 1.1-1.2 · Abitur Hessen Wirtschaftslehre LK · bilingual Englisch 2021

AiRobotics' new robotic lawnmower

AiRobotics plc is one of the leading robotic lawnmower companies which manufactures robot lawnmowers that help people to enjoy a beautifully trimmed garden in a more efficient and easier way. More than five million families around the world live more easily with the help of AiRobotics' products produced in Indianapolis, Indiana.

With AiRobotics plc competitive product range from the GripSpecial to the PowerAggregate mower series, the company has satisfied families with a neatly trimmed garden for more than 15 years.

AiRobotics plc is just about to develop a new robotic lawnmower which will be produced in a new line of production. Therefore, the management must decide between two investment objects.

1 AiRobotics plc is just about to develop a new robotic lawnmower which will be produced in a new line of production. Therefore, the management must decide between two investment objects.

1.1

Name and describe the five phases of an ideal-typical investment decision-making process in general.

(10 BE)

1.2

For the production of the new product line the procurement of a new machine is necessary. The company has already shortlisted a US-American semi-automatic machine produced in Lafayette, Indiana that has a useful life of six years. The initial acquisition costs including delivery and installation will be USD 66,000. AiRobotics plc desires a minimum rate of return of 7.5 % and wants to base its investment decision on a long-term analysis using the net present value and the internal rate of return methods. The estimated cash in- and outflows of the production line can be taken from Material 1.

Material 1: Estimated cash in- and outflow of new production line

Year

Cash outflow in USD

Cash inflow in USD

End of year 1 · 40,000 · 45,000

End of year 2 · 50,000 · 60,000

End of year 3 · 45,000 · 65,000

End of year 4 · 35,000 · 65,000

End of year 5 · 25,000 · 70,000

End of year 6 · 15,000 · 70,000

1.2.1

Calculate the net present values of the production line with the trial interest rates of $i_1 = 5\,\%$ and $i_2 = 10\,\%$.

(8 BE)

USD

USD

1.2.2

Calculate the internal rate of return of the investment object.

(4 BE)

%

1.2.3

Explain your results of 1.2.1 and 1.2.2 in detail. Assess the procurement of the machine considering two non-monetary aspects given in the task.

(8 BE)