Marginal Analysis Presentation

Marginal Analysis Presentation.

Course Scenario

Oil Company X is a large oil refinery which has been expanding and  taking on new investment projects. Recently, they have considered  building a pipeline that stretches across the United States, from Canada  to New Orleans.

This particular process will generate high revenues, but also high  costs. The expected profit generated from the initial investment after  10 years will be approximately 8%. Assume that stocks tend to average a  return of approximately 10% over a 10 year period.

Recently, the CEO has faced backlash from the company Board who  have asked specific questions concerning the recommendations put forth  by the Cost Analysis Department. The Cost Analysis Department has  indicated that the marginal analysis does not support the project.   However, the Board feels that this would be a profitable project due to  the massive revenues that would be generated. They have questions in  relation to marginal analysis, and how it is undertaken. As a Cost  Analyst, you have been asked to make a presentation to the Board.

Instructions

The head of the Cost Analysis Department has asked you, a recent  hire, to make a presentation to the Board explaining your  recommendation. You will provide the Board with an introduction to  marginal analysis used by the company when making investment decisions.

Your PowerPoint should include narration as you make your presentation to the Board.

Your presentation should justify your Department’s recommendation  not to undertake the project. This should include an explanation of the  following terms and how they relate to the department’s decision:

1. Opportunity Cost
2. Marginal Benefit
3. Marginal Cost

There are many free screen recording software/Webware options  available (such as Screencast-O-Matic) to use in presenting your  PowerPoint. Make sure that both your voiced narration and the PowerPoint  slides are captured during your screen recording.  

– Don’t do the recording, just put in reference what should be presented for each of the slides as a memo and I can complete the recording.

Pay attention to your audience. Remember that you are explaining  the concepts of marginal analysis and opportunity cost to someone who  may have no previous knowledge of economics.

Marginal Analysis Presentation

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