Homework Answers
| Particulars | Basis | working | NORMAL | BEST CASE | WORST CASE | |||
| B | sales | 240*16475 | 3954000.00 | 1.10 | 4349400.00 | 0.90 | 3558600.00 | |
| C | variable cost | 240*11450 | 2748000.00 | 0.90 | 2473200.00 | 1.10 | 3022800.00 | |
| D | contribution | B-C | 1206000.00 | 1876200.00 | 535800.00 | |||
| depreciation p.a | 85000/4 | 21250.00 | 21250.00 | 21250.00 | ||||
| E | Fixed Cost | Given | 570000.00 | 0.90 | 513000.00 | 1.10 | 627000.00 | |
| F | Profit before tax | D-E | 636000.00 | 1363200.00 | -91200.00 | |||
| G | Tax @22%? | 139920.00 | 299904.00 | -20064.00 | ||||
| H | Profit after tax | F- 22% | 496080.00 | 1063296.00 | -71136.00 | |||
| I | Present value of annuity | H*3.1024456895909 | 1539061.26 | 3298818.09 | -220695.58 | |||
| J | Inetial Investment | note-1 | 850000.00 | |||||
| K | NPV | 689061.26 | 3298818.09 | -220695.58 | ||||
| best case NPV | 3298818.09 | |||||||
| Worst case NPV | -220695.58 | |||||||
| Basic NPV | 689061.26 | |||||||
| Sensitivity | (3298818.09-(-220695.58))/(513000-627000) | |||||||
| -30.87 | ||||||||
Add Answer to:
You are considering a new product launch. The project will cost $850,000, have a 4-year life, and have no salvage value...
You are considering a new product launch. The project will cost $830,000, have a 4-year life,...
You are considering a new product launch. The project will cost $830,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 220 units per year; price per unit will be $16,425, variable cost per unit will be $11,350, and fixed costs will be $560,000 per year. The required return on the project is 9 percent and the relevant tax rate is 25 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $860,000, have a 4-year life,...
You are considering a new product launch. The project will cost $860,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 250 units per year, price per unit will be $16,500, variable cost per unit will be $11,500, and fixed costs will be $575,000 per year. The required return on the project is 12 percent and the relevant tax rate is 23 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $820,000, have a 4-year life,...
You are considering a new product launch. The project will cost $820,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 210 units per year; price per unit will be $16,400, variable cost per unit will be $11,300, and fixed costs will be $555,000 per year. The required return on the project is 12 percent and the relevant tax rate is 24 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $800,000, have a 4-year life,...
You are considering a new product launch. The project will cost $800,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 190 units per year; price per unit will be $16,350, variable cost per unit will be $11,200, and fixed costs will be $545,000 per year. The required return on the project is 10 percent and the relevant tax rate is 22 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $800,000, have a 4-year life,...
You are considering a new product launch. The project will cost $800,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 190 units per year; price per unit will be $16,350, variable cost per unit will be $11,200, and fixed costs will be $545,000 per year. The required return on the project is 10 percent and the relevant tax rate is 22 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $860,000, have a 4-year life, and have no salvage value;...
You are considering a new product launch. The project will cost $860,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 520 units per year; price per unit will be $18,800, variable cost per unit will be $15,500, and fixed costs will be $890,000 per year. The required return on the project is 13 percent, and the relevant tax rate is 24 percent. a. The unit sales, variable cost, and fixed...
You are considering a new product launch. The project will cost $860,000, have a 4-year life,...
You are considering a new product launch. The project will cost $860,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 250 units per year; price per unit will be $16,500, variable cost per unit will be $11,500, and fixed costs will be $575,000 per year. The required return on the project is 12 percent and the relevant tax rate is 23 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $940,000, have a 5-year life,...
You are considering a new product launch. The project will cost $940,000, have a 5-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 330 units per year; price per unit will be $15,935, variable cost per unit will be $11,900, and fixed costs will be $615,000 per year. The required return on the project is 12 percent and the relevant tax rate is 21 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $890,000, have a 5-year life,...
You are considering a new product launch. The project will cost $890,000, have a 5-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 280 units per year; price per unit will be $15,885, variable cost per unit will be $11,650, and fixed costs will be $590,000 per year. The required return on the project is 11 percent and the relevant tax rate is 21 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $910,000, have a 5-year life,...
You are considering a new product launch. The project will cost $910,000, have a 5-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 300 units per year; price per unit will be $15,905, variable cost per unit will be $11,750, and fixed costs will be $600,000 per year. The required return on the project is 9 percent and the relevant tax rate is 23 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $830,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 220 units per year; price per unit will be $16,425, variable cost per unit will be $11,350, and fixed costs will be $560,000 per year. The required return on the project is 9 percent and the relevant tax rate is 25 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $860,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 250 units per year, price per unit will be $16,500, variable cost per unit will be $11,500, and fixed costs will be $575,000 per year. The required return on the project is 12 percent and the relevant tax rate is 23 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $820,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 210 units per year; price per unit will be $16,400, variable cost per unit will be $11,300, and fixed costs will be $555,000 per year. The required return on the project is 12 percent and the relevant tax rate is 24 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $800,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 190 units per year; price per unit will be $16,350, variable cost per unit will be $11,200, and fixed costs will be $545,000 per year. The required return on the project is 10 percent and the relevant tax rate is 22 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $800,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 190 units per year; price per unit will be $16,350, variable cost per unit will be $11,200, and fixed costs will be $545,000 per year. The required return on the project is 10 percent and the relevant tax rate is 22 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $860,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 250 units per year; price per unit will be $16,500, variable cost per unit will be $11,500, and fixed costs will be $575,000 per year. The required return on the project is 12 percent and the relevant tax rate is 23 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $940,000, have a 5-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 330 units per year; price per unit will be $15,935, variable cost per unit will be $11,900, and fixed costs will be $615,000 per year. The required return on the project is 12 percent and the relevant tax rate is 21 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $890,000, have a 5-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 280 units per year; price per unit will be $15,885, variable cost per unit will be $11,650, and fixed costs will be $590,000 per year. The required return on the project is 11 percent and the relevant tax rate is 21 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $910,000, have a 5-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 300 units per year; price per unit will be $15,905, variable cost per unit will be $11,750, and fixed costs will be $600,000 per year. The required return on the project is 9 percent and the relevant tax rate is 23 percent. Based on your experience, you think the unit...
Most questions answered within 3 hours.
-
By applying what you know about Grignard reagents and the
mechanism by which benzoic acid is...
asked 9 minutes ago -
For thermoplastics, explain the effects of increasing of each of
the following properties on a polymer’s...
asked 10 minutes ago -
Make a menu for the user to use in python 3 that can search and
replace...
asked 1 minute ago -
1) An aqueous solution contains 0.280 M
NaHS and 0.128 M
H2S.
The pH of this...
asked 16 minutes ago -
Situational Leadership
is based on interplay of all of the following except:
The amount of guidance...
asked 17 minutes ago -
Consider the following problem: given n positive integers,
separate them into two groups such that adding...
asked 20 minutes ago -
Briefly discuss the following statements:
2.1 A partner never has the right to claim compensation for...
asked 23 minutes ago -
If a bond has an annual probability of default of 6%, 10% and
12% in years...
asked 32 minutes ago -
Let X be normally distributed with mean μ = 10 and standard
deviation σ = 6....
asked 36 minutes ago -
You're examining some of the tiny printing on one of the newer
twenty-dollar bills. A 1.5...
asked 41 minutes ago -
Discuss several common sources of secondary data coming from
government sources.
asked 44 minutes ago -
This is a basic java program where you convert units using only
loops, control statements and...
asked 44 minutes ago