:28:01
All right, 11:00.
But I'm gonna talk to that dean.
:28:04
These classes can be
a real inconvenience.
:28:07
All right, settle down, people.
:28:09
We've got a lot to cover,
and time is short.
:28:16
There are two kinds of people
in business today...
:28:19
the quick and the dead.
:28:21
So, rather than waste
your time this semester...
:28:24
with a lot of
useless theories...
:28:27
we're going to jump right in
with both feet...
:28:29
and create a fictional company
from the ground up.
:28:32
We'll construct
our physical plant...
:28:35
we'll set up
an efficient administrative...
:28:37
and executive structure...
:28:39
then we'll manufacture
our product and market it.
:28:43
I think you'll find it very
interesting and a lot of fun.
:28:45
So, let's start by looking
at construction costs...
:28:49
of our new factory.
:28:51
What's the product?
:28:53
That is immaterial...
:28:54
for the purposes
of our discussion here...
:28:57
but if it makes you happy...
:28:58
let's say we're making
tape recorders.
:29:01
Tape recorders?
Are you kiddin'?
:29:03
The Japs will kill us
on the labor costs.
:29:06
OK, fine.
:29:08
Then let's just say
they're widgets.
:29:11
What's a widget?
:29:13
It's a fictional product.
It doesn't matter.
:29:16
Doesn't matter.
Tell that to the bank.
:29:18
Take it easy.
It's the first day.
:29:20
On the board,
you will see a cost analysis...
:29:24
for construction of
a 30,000 square-foot facility...
:29:27
which will encompass
both factory and office space...
:29:29
and is fully serviced
by all utilities...
:29:32
a railroad spur line
and a four-bay shipping dock.
:29:35
Hold it, hold it. Why build?
You're better off leasing...
:29:39
at a buck and a quarter,
a buck and a half a square foot.
:29:41
Take your down payment
and put it into CDs...
:29:44
or something else you can roll
over every couple of months.
:29:46
Thank you, Mr. Melon...
:29:48
but we'll be concentrating
on finance...
:29:51
a little later in the term.
:29:53
For the time being,
let's just concentrate...
:29:55
on the construction figures,
shall we?
:29:58
You'll see the final bottom line
requires the factoring in...