The company Smart Inc. is a company that produces T-shirts in Toronto area. The results of the co...
The company Smart Inc. is a company that makes Dog Shampoo in Sudbury area. The results have been presented in the financial statement. Sales 16 000 000$ Fixed Costs (8 000 000) Variable Costs (12 000 000) Depreciation (3 000 000) Profit (loss) (7 000 000) According to the experts, this loss has been caused by the poor performance of the equipment. They suggest to the board of directors to replace the old equipment by new ones. Considering following information,...
The company Smart Inc. is a company that produces Dog Shampoo in Toronto area. The results of the company, which has been mediocre for the past couple of years, have been presented in the annual financial statement. Sales (1 million units x 10$) 10 000 000$ Fixed Costs (5 000 000) Variable Costs (1 million units x 7$) (7 000 000) Depreciation (3 000 000) Annual Profit (loss) (5 000 000) According to the experts, the loss has been caused by the poor performance of the...
Finco Inc. manufactures financial calculators. The company is deciding whether to introduce a new calculator. This calculator will sell for $85. The company feels that sales will be 13,500, 13,900, 14,000, 14,200, and 13,000 units per year for the next 5 years. Variable costs will be 30% of sales, and fixed costs are $250,000 per year. The firm hired a marketing team to analyze the viability of the product and the marketing analysis cost $1,000,000. The company plans to use...
XYZ Inc. manufactures financial calculators. The company is deciding whether to introduce a new calculator. This calculator will sell for $100. The company feels that sales will be 12,500, 13,000, 14,000, 13,200, and 12,500 units per year for the next 5 years. Variable costs will be 25% of sales, and fixed costs are $300,000 per year. The firm hired a marketing team to analyze the viability of the product and the marketing analysis cost $1,500,000. The company plans to use...
Additional Information for All Question: Return on market is 10%, retun on T-bills is 4% and companies pay 40% corporate tax and 30% capital gains tax.. Aston Inc is a company that has a cost of capital of 16%. It is considering either leasing or purchasing a new machine for a project that still has 3 years of useful economic life left Aston Inc is currently using an old machine that is fully depreciated and amortized After accounting for revenue...
Additional Information for All Question: Return on market is 10%, return on T-bills is 4%, and companies pay 40% corporate tax and 30% capital gains tax. Aston Inc. is a company that has a cost of capital of 16%. It is considering either leasing or purchasing a new machine for a project that still has 3 years of useful economic life left. Aston Inc. is currently using an old machine that is fully depreciated and amortized After accounting for revenue...
Additional Information for All Question: Return on market is 10%, return on T-bills is 4%, and companies pay 40% corporate tax and 30% capital gains tax. Aston Inc. is a company that has a cost of capital of 16%. It is considering either leasing or purchasing a new machine for a project that still has 3 years of useful economic life left. Aston Inc. is currently using an old machine that is fully depreciated and amortized After accounting for revenue...
a company is considering purchasing new safety equipment. The equipment costs $1,750,000. The equipment is going to be depreciated using straight-line to zero in 3 years. additional revenues for the equipment are $1,350,000 and the annual expenses are $400,000. After three years the company will sell the safety equipment for $140,000. The intial investment in working capital is $200,000 and the 35 percent tax bracket and requires an 18% return on projects. What is the NPV of the project? also...
ASSIGNMENT 1 Burton is a small manufacturing company that makes furniture. They are considering a project where they will make special metal ornaments; this is considered to be in the normal area of its business. This will involve the company buying a new piece of equipment, the capital costs of which will be $400,000; there will also be an extra $50,000 of installation costs which can be expensed straight away. This piece of equipment will replace an old machine which...
(Replacement project cash flows) The Minot Kit Aircraft Company of Minot, North Dakota, uses a plasma cutter to fabricate metal aircraft parts for its plane kits. The company currently is using a cutter that it purchased four years ago that has a book value of $70 comma 000 and is being depreciated $17 comma 500 per year over the next 4 years. If the old cutter were to be sold today, the company estimates that it would bring in an...