Amount | PV factor | Present value | |
Avoidable loss | 11000 | 3.546 | 39006 |
Increase in annual profits | 10000 | 3.546 | 35460 |
Sell of Equipment | 17000 | 1 | 17000 |
Net present value | 91466 | ||
Net present value of stopping the production and sale of Product Q = 91466 |
X Company is planning to stop the production and sale of Product Q, which lost $11,000...
X Company is planning to launch a new product. A market research
study, costing $150,000, was conducted last year, indicating that
the product will be successful for the next four years. Profits
from sales of the product are expected to be $154,000 in each of
the first two years and $100,000 in each of the last two years. The
company plans to undertake an immediate advertising campaign that
will cost $87,000. New manufacturing equipment will have to be
purchased for...
X Company is planning to launch a new product. A market research study, costing $150,000, was conducted last year, indicating that the product will be successful for the next four years. Profits from sales of the product are expected to be $174,000 in each of the first two years and $106,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $92,000. New manufacturing equipment will have to be purchased for...
X Company is planning to launch a new product. A market research study, costing $130,000, was conducted last year, indicating that the product will be successful for the next four years. Profits from sales of the product are expected to be $179,000 in each of the first two years and $107,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $75,000. New manufacturing equipment will have to be purchased for...
X Company is planning to launch a new product. A market research study, costing $150,000, was conducted last year, indicating that the product will be successful for the next four years. Profits from sales of the product are expected to be $167,000 in each of the first two years and $115,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $95,000. New manufacturing equipment will have to be purchased for...
X Company is planning to launch a new product. A market research study, costing $130,000, was conducted last year, indicating that the product will be successful for the next four years. Profits from sales of the product are expected to be $177,000 in each of the first two years and $117,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $87,000. New manufacturing equipment will have to be purchased for...
X Company is planning to launch a new product. A market research study, costing $130,000, was conducted last year, indicating that the product will be successful for the next four years. Profits from sales of the product are expected to be $151,000 in each of the first two years and $109,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $90,000. New manufacturing equipment will have to be purchased for...
X Company is planning to launch a new product. A market research study, costing $150,000, was conducted last year, indicating that the product will be successful for the next four years. Profits from sales of the product are expected to be $174,000 in each of the first two years and $106,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $92,000. New manufacturing equipment will have to be purchased for...
X Company is planning to launch a new product. A market research study, costing $120,000, was conducted last year, indicating that the product will be successful for the next four years. Profits from sales of the product are expected to be $164,000 in each of the first two years and $101,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $76,000. New manufacturing equipment will have to be purchased for...
X Company is planning to launch a new product. A market research study, costing $150,000, was conducted last year, indicating that the product will be successful for the next four years. Profits from sales of the product are expected to be $163,000 in each of the first two years and $ 105,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $77,000. New manufacturing equipment will have to be purchased...
X Company is planning to launch a new product. A market research study, costing $150,000, was conducted last year, indicating that the product will be successful for the next four years. Profits from sales of the product are expected to be $151,000 in each of the first two years and $107,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $78,000. New manufacturing equipment will have to be purchased for...