GM is a private limited company that operates a manufacturing facility on the International Space Station. It manufactures parts for NASA using 3D printing. GM plans to expand its capacity to make larger items like satellites. The new facility will cost $40 million and is expected to generate profits shown in Table 1. After 4 years, the US government will purchase the facility for $2.5 million.
GM is a private limited company that operates a manufacturing facility on the International Space Station. It manufactures parts for NASA using 3D printing. GM plans to expand its capacity to make larger items like satellites. The new facility will cost $40 million and is expected to generate profits shown in Table 1. After 4 years, the US government will purchase the facility for $2.5 million.
GM is a private limited company that operates a manufacturing facility on the International Space Station. It manufactures parts for NASA using 3D printing. GM plans to expand its capacity to make larger items like satellites. The new facility will cost $40 million and is expected to generate profits shown in Table 1. After 4 years, the US government will purchase the facility for $2.5 million.
GM is a private limited company that operates a manufacturing facility on the International Space Station. It manufactures parts for NASA using 3D printing. GM plans to expand its capacity to make larger items like satellites. The new facility will cost $40 million and is expected to generate profits shown in Table 1. After 4 years, the US government will purchase the facility for $2.5 million.
Galileo Manufacturing Ltd. (GM ) is a private limited company that operates a manufacturing facility on the International Space Station. Using a three- dimensional (3D) printer, GM manufactures parts and tools for use by the National Aeronautics and Space Administration (NASA) of the United States (US) government. NASA is GM’s sole customer. Soon, GM will expand its manufacturing capacity to make large items, such as satellites, that NASA can then put into orbit. A new manufacturing facility with increased capacity will cost $40 million. Expected profit from the new manufacturing facility is given in Table 1 below. Table 1: Expected profit from GM’s new manufacturing facility
The US government has contracted to purchase the manufacturing facility from
GM at the end of four years for $2.5 million.
1a. State two advantages of a private limited company. [2 marks]
1b. For the new manufacturing facility: calculate the payback period (show [2 marks] all your working). 1c. For the new manufacturing facility: calculate the average rate of return [2 marks] (ARR) (show all your working).
1d. For the new manufacturing facility: comment on your answer from [2 marks] either b(i) or b(ii).
1e. Explain one reason for GM manufacturing on the International Space [2 marks] Station.
