9000  REM ****MKBUY****BUSINESS PROGRAM
9002  REM MKBUY********VERSION #1  (7/31/69)*****MAKE-BUY ANALYSIS
9004  PRINT "   *  MAKE-BUY ANALYSIS  *   "
9006  PRINT 
9008  REM  INPUT THE NAME OF THE COMPONENT UNDER CONSIDERATION
9010  REM  (FIRST QUESTION) IN THE SINGULAR, NOT THE PLURAL.
9012  REM  THIS PROGRAM DOES TAKE THE INVESTMENT TAX CREDIT INTO ACCOUNT.
9014  REM    INITIALIZATION
9016  DIM J$[3]
9018  DIM A$[3]
9020  DIM C$[4]
9022  DIM I$[25]
9024  DIM D$[25]
9026  DIM A[25]
9028  DIM B[25]
9030  DIM C[25]
9032  DIM D[25]
9034  LET C2=0
9036  LET C8=0
9038  LET A1=0
9040  LET Y1=0
9042  LET A[1]=0
9044  LET B[1]=0
9046  LET C[1]=0
9048  LET D[1]=0
9050  PRINT 
9052  PRINT 
9054  PRINT " THIS PROGRAM CALCULATES THE PRESENT VALUE OF THE COST ";
9056  PRINT "SAVING INCURRED BY MAKING A PRODUCT AS OPPOSED TO BUYING ";
9058  PRINT "IT."
9060  PRINT 
9062  PRINT "FIRST WE WOULD LIKE TO ASK YOU A FEW QUESTIONS..."
9064  PRINT 
9066  PRINT 
9068  PRINT " WHAT IS THE NAME OF YOUR COMPANY";
9070  INPUT D$
9072  PRINT 
9074  PRINT " WHAT IS THE NAME OF THE COMPONENT YOU ARE CONSIDERING"
9076  PRINT "MAKING OR BUYING";
9078  INPUT I$
9080  PRINT 
9082  PRINT "*** ENTER ALL COSTS IN DOLLARS ***"
9084  PRINT 
9086  PRINT "  1. WHAT IS THE COST TO BUY A ";I$;" FOB YOUR"
9088  PRINT " PLANT";
9090  INPUT I1
9092  PRINT 
9094  PRINT "  2. WHAT IS THE COST TO MANUFACTURE A ";I$;" IN YOUR PLANT ";
9096  PRINT "INCLUDING DIRECT MATERIALS AND LABOR BUT NOT OVERHEAD";
9098  INPUT I2
9100  PRINT 
9102  PRINT "  3. WHAT IS THE INITIAL INVESTMENT (COST OF THE EXTRA MACHINERY "
9104  PRINT "THAT WOULD BE NEEDED TO MANUFACTURE ";I$;"S)";
9106  INPUT I3
9108  PRINT 
9110  PRINT "  4. WHAT IS THE LIFE OF THE INVESTMENT IN YEARS";
9112  INPUT I4
9114  GOSUB 9438
9116  PRINT 
9118  PRINT "  5. WHAT IS THE SALVAGE VALUE OF THIS INVESTMENT";
9120  INPUT I5
9122  LET C[I4+1]=-I5
9124  PRINT "(NOTE: SUM-OF-THE-YEARS-DIGITS METHOD WILL BE USED TO DEPRECIATE"
9126  PRINT "THE INVESTMENT."
9128  LET S4=0
9130  FOR S5=1 TO I4
9132  LET S4=S4+S5
9134  NEXT S5
9136  PRINT 
9138  PRINT "  6. WHAT ARE THE ANNUAL FIXED COSTS (SUCH AS SUPERVISION AND"
9140  PRINT "MAINTENANCE)INVOLVED IN YOUR MAKING ";I$;"S";
9142  INPUT I7
9144  PRINT 
9146  PRINT "  7. WHAT IS YOUR CORPORATE TAX RATE IN PERCENT?";
9148  INPUT I8
9150  LET S1=I8
9152  GOSUB 9190
9154  IF S2=1 THEN 9146
9156  LET I8=I8/100
9158  PRINT 
9160  PRINT "  8. WHAT IS THE LOCAL TAX RATE ON THE EXTRA INVESTMENT IN DOLLARS"
9162  PRINT "PER THOUSAND";
9164  INPUT I9
9166  LET I9=I9/1000
9168  PRINT 
9170  PRINT "  9. WHAT IS YOUR COST OF CAPITAL IN PERCENT?";
9172  INPUT J1
9174  LET S1=J1
9176  GOSUB 9190
9178  IF S2=1 THEN 9170
9180  LET J1=J1/100
9182  PRINT 
9184  PRINT " 10. WHAT IS YOUR ESTIMATE OF THE YEARLY DEMAND FOR ";I$;"S"
9186  INPUT J2
9188  GOTO 9206
9190  REM  PERCENTAGE CHECK SUBROUTINE
9192  IF S1>1 THEN 9202
9194  IF S1=0 THEN 9202
9196  PRINT "PLEASE GIVE YOUR ANSWER IN PERCENT."
9198  LET S2=1
9200  GOTO 9204
9202  LET S2=2
9204  RETURN 
9206  LET D[1]=C7=D1
9208  LET D[I4+1]=-I5*(1-I8)
9210  FOR A=2 TO I4
9212  LET C[A]=D[A]=0
9214  NEXT A
9216  REM   EXECUTIVE ROUTINE
9218  FOR A=2 TO I4+1
9220  LET C6=(1+J1)^(A)
9222  LET A[A]=I1*J2
9224  LET B[A]=A[A]*(1-I8)
9226  LET C5=B[A]/C6
9228  LET C8=C8+C5
9230  GOSUB 9458
9232  LET C3=(I3-C2)*I9
9234  LET C4=(I2*J2)+I7+C3
9236  LET C[A]=C4+C1+C[A]
9238  LET D[A]=(C4*(1-I8))-(C1*I8)+D[A]
9240  LET C5=D[A]/C6
9242  LET C7=C7+C5
9244  NEXT A
9246  REM  PRINTOUT ROUTINE
9248  PRINT 
9250  PRINT "**********************************************************"'7'7'7
9252  PRINT 
9254  PRINT "THE PRESENT VALUE OF THE COST TO MAKE IS ";C7
9256  PRINT "THE PRESENT VALUE OF THE COST TO BUY IS  ";C8
9258  PRINT 
9260  LET C9=ABS(C8-C7)
9262  GOTO SGN(C8-C7)+2 OF 9264,9278,9268
9264  LET C$="BUY"
9266  GOTO 9270
9268  LET C$="MAKE"
9270  PRINT D$;" SHOULD ";C$;" ";I$;
9272  PRINT "S AT A SAVINGS OF ";C9;" DOLLARS."
9274  PRINT 
9276  IF A1=1 THEN 9360
9278  PRINT 
9280  PRINT " **** THE FLOWS ****"
9282  PRINT 
9284  PRINT TAB(10);"IF BUY**********";
9286  PRINT TAB(38);"IF MAKE*********";
9288  PRINT TAB(62);"***NET***"
9290  PRINT "YEAR";
9292  PRINT TAB(8);"EXPENSE";
9294  PRINT TAB(20);"CASH FLOW";
9296  PRINT TAB(36);"EXPENSE";
9298  PRINT TAB(48);"CASH FLOW";
9300  PRINT TAB(62);"CASH FLOW"
9302  FOR A=1 TO I4+1
9304  PRINT A;
9306  PRINT TAB(7);
9308  PRINT A[A];
9310  PRINT TAB(19);
9312  PRINT B[A];
9314  PRINT TAB(33);
9316  PRINT C[A];
9318  PRINT TAB(47);
9320  PRINT D[A];
9322  LET S7=B[A]-D[A]
9324  PRINT TAB(61);
9326  PRINT S7
9328  NEXT A
9330  REM  SENSITIVITY CHECK
9332  PRINT 
9334  PRINT "--------------------------------------------------------------"
9336  PRINT 
9338  PRINT "WOULD YOU LIKE TO SEE THE EFFECT OF CHANGING A VARIABLE?"
9340  PRINT "(YES OR NO)";
9342  INPUT A$
9344  IF A$[1,2]="NO" THEN 9470
9346  LET A1=1
9348  PRINT "WHAT IS THE NUMBER OF THE QUESTION TO WHICH YOU WOULD LIKE"
9350  PRINT "TO CHANGE YOUR ANSWER";
9352  INPUT A2
9354  PRINT "WHAT IS THE NEW VALUE";
9356  INPUT A3
9358  GOTO 9380
9360  PRINT "-----------------------------------------------------------"
9362  PRINT 
9364  PRINT "MORE CHANGES";
9366  INPUT A$
9368  IF A$[1,2]="NO" THEN 9470
9370  PRINT "SAME QUESTION";
9372  INPUT J$
9374  IF J$[1,2]="NO" THEN 9348
9376  PRINT "NEW VALUE";
9378  INPUT A3
9380  GOTO A2 OF 9382,9386,9390,9394,9408,9414,9418,9422,9426,9430
9382  LET I1=A3
9384  GOTO 9432
9386  LET I2=A3
9388  GOTO 9432
9390  LET I3=A3
9392  GOTO 9432
9394  LET I4=A3
9396  GOSUB 9438
9398  LET C[1]=I3
9400  LET S4=0
9402  FOR S5=1 TO I4
9404  LET S4=S4+S5
9406  NEXT S5
9408  LET I5=A3
9410  LET C[I4+1]=-I5
9412  GOTO 9432
9414  LET I7=A3
9416  GOTO 9432
9418  LET I8=A3/100
9420  GOTO 9432
9422  LET I9=A3/1000
9424  GOTO 9432
9426  LET J1=A3/100
9428  GOTO 9432
9430  LET J2=A3
9432  LET C2=C8=0
9434  GOTO 9206
9436  STOP 
9438  REM  INVESTMENT TAX CREDIT
9440  IF I4 >= 4 THEN 9446
9442  LET S3=0
9444  GOTO 9454
9446  IF I4 >= 8 THEN 9452
9448  LET S3=(2/3)*.07*I3
9450  GOTO 9454
9452  LET S3=.07*I3
9454  LET D1=I3-S3
9456  RETURN 
9458  REM  DEPRECIATION SUBROUTINE
9460  LET S6=I3-I5
9462  LET C1=S6*((I4+2-A)/S4)
9464  LET C2=C2+C1
9466  RETURN 
9470  PRINT "*************************************************************"
9999  END 
