In Matlab create a simulation using net present value to simulate profitability, the initial cost is...
In Matlab create a simulation using net present value to simulate profitability, the initial cost is either 3 or 5 billion - both being equally likely Variable Costs: Year 1: either 5000 or 8000 equally likely Year 2: 1.10*(Year 1 variable costs) Sales in year 1 are 400,000 with a standard deviation of 20,000 Year 2 sales are expected to be at the sales level of the previous year with a standard deviation of 20,000 Price in Year 1= 15,000 Price in Year 2= 1.10*(Year 1 price)+40(% where year 1 sales exceed expected year 1 sales)
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In Matlab create a simulation using net present value to
simulate profitability, the initial cost is...
1. Develop a simulation model in SPSS for a three-year financial analysis of total profit based on the following data and information. Sales volume in the first year is 100,000 units and is projected...
1. Develop a simulation model in SPSS for a three-year financial analysis of total profit based on the following data and information. Sales volume in the first year is 100,000 units and is projected to grow at a rate that is normally distributed with a mean of 7% per year and a standard deviation of 4%. The selling price is $10 and the price increase each year is normally distributed with a mean of $0.50 and a standard deviation of...
Break-even and Profitability analysis You are the proud owner of a sock store. You sell one...
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2. A Company is considering replacing one of existing machine with either a state of the art “Automatic Machine” which will reduce the labor cost by 80% or with a standard machine. The automatic machi...
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with either a state of the art “Automatic Machine” which will
reduce the labor cost by 80% or with a standard machine. The
automatic machine will cost ₹ 3,50,000 with an estimated life of 7
years, whereas the standard machine will cost ₹ 2,00,000 with an
estimated life of 10 year. Both machine have no residual value.
Assume tax rate to be 40%. The annual sales and costs are estimated...
expected return
Practice Problem 11-16 Scenario Analysis (LO3)The common stock of Escapist Films sells for $30 a share and offers the following payoffs next year:Dividend Stock PriceBoom 1 $ 20Normal economy $2 29Recession 5 36Calculate the expected return and standard deviation of Escapist. All three scenarios are equally likely. Then calculate the expected return and standard deviation ofa portfolio half invested in Escapist and half in Leaning Tower of Pita. Show that the portfolio standard deviation is lower than either stock's.The common...
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Betty DeRose, Inc. sells three products. Income statements for the three products for the most recent...
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Betty DeRose, Inc. sells three products. Income statements for the three products for the most recent...
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Break-even and Profitability analysis You are the proud owner of a sock store. You sell one type of sock, but in thousands of colours. Before you set the price of the sock, you must conduct break-even analysis and profitability analysis. The cost of your operation are: Rent: 5000 Salary: 5000 Advertising: 10,000 Cost of socks wholesale: 1 The price for comparable socks at other stores ranges from $1 to $6, Calculate the breakeven point for each price level: Fixed Cost...
2. A Company is considering replacing one of existing machine
with either a state of the art “Automatic Machine” which will
reduce the labor cost by 80% or with a standard machine. The
automatic machine will cost ₹ 3,50,000 with an estimated life of 7
years, whereas the standard machine will cost ₹ 2,00,000 with an
estimated life of 10 year. Both machine have no residual value.
Assume tax rate to be 40%. The annual sales and costs are estimated...
Betty DeRose, Inc. sells three products. Income statements for the three products for the most recent year appear below: Product #1 $140,000 Product #2 $120,000 Product #3 $200,000 Sales revenue Costs: Variable production costs ... Advertising Rent .............. Supervisor's salary .. Sales commissions Net income/loss ............ 91,000 15,000 14,000 20,000 7,000 <7,000> 48,000 12,000 14,000 20,000 6,000 20,000 140,000 10,000 14,000 20,000 10,000 6,000 The rent is allocated to the three products equally and sales commissions are paid at a...
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