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The aim of this report is to provide the following information: Calculation of the minimum bid price for the contract. Identify possible options/alternatives. Explain rationale behind the findings.

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PART ONE - PROJECT APPRAISAL 1.0 TERMS OF REFERENCE/STATEMENT OF NEED In order to meet the requirement of the Diploma in Management Studies, an analysis has been commissioned to assess the viability of a four-year contract for the production of eight Aargonian Reducers. The report is to be submitted by 16th April 2002. 2.0 INFORMATION This report is based on, and should be read in conjunction with, data supplied in the information sheet distributed on 19th February 2002. 3.0 AIMS AND OBJECTIVES The aim of this report is to provide the following information: 3.1 Calculation of the minimum bid price for the contract. 3.2 Identify possible options/alternatives. 3.3 Explain rationale behind the findings. 3.4 Determine an appropriate figure for payment in two equal instalments; one at the beginning of the contract and one on completion. 4.0 METHODOLOGY AND BASIC ASSUMPTIONS 4.1 Costings are based on a Divisional perspective rather than that of the organization as a whole. 4.2 The calculations for the...

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