Harvards Super Project
... Facts · A new project proposes the addition of a Super line of deserts with a capital cost of $200,000: $120,000 for machinery and equipment, and $80,000 for modifications on existing facilities. · General Foods expects Super to capture 10% of the total desert market; Eighty percent is expected to come from growth in market share while the remaining 20% would come from the erosion of General Food Corporation Jell-O sales. · A Jell-O agglomerator, which is currently operating under capacity, will be used to process the Super line. · The capital budget manual requires that the Super project be evaluated using the payback method and a return on funds employed (ROFE).