The following reports are for an “Outsource or Buy” analysis.

The “Make” reports are similar to the “Replace” reports

The key report is the “Incremental Cash Flow” report where the “Buy Cash Flow” is subtracted from the “Replace Cash Flow” to establish the incremental cash flow and the financial advantages or disadvantages of making compared to buying or outsourcing

The reports are for the following outsource decision:

A manufacturer is introducing a new line of “Excel” pumps has to decide whether to:

1. Purchase and install the equipment for $10,000,000 and manufacture the pump casing or
2. Outsource the manufacturing of the pump casing which will require an investment of $350,000 for material handlings equipment

Should the company invest in the new equipment or buy the pump casing from an outside supplier?

The sample set of key reports below are for the Outsource Analysis. The Comparison Report and the Increment Cash Flow report compare “Buying” with “Outsourcing”

Reports & Graphs

Make versus Outsource(Buy) Reports

• Incremental Cash Flow Analysis. Make versus Buy
• Comparison Report

Outsource(Buy) Reports

• Expense Statement Yearly
• Operating Cash Flow Yearly
• Working Capital Yearly
• Net Cash Flow (Before & After Tax)
• Revenue & Expense Calculations Yearly
• Cash Flow on Disposition
• Graphs
• Input Data Summary
• Projection Descriptions
• Depreciation Schedule
• Financing (Not used for the outsource analysis)

• All reports(19 pages or more) (Excludes the Incremental Cash Flow and Project Comparison reports)

Note: There are many more reports available including monthly reports