Business, 06.03.2020 15:52 nannagarvey9945
You are a financial analyst for a major consumer products company. They are considering the product launch of a new cereal with the following expenditures: $10 million ($5 million upfront, S5 million at end of 1st year). Plant will take 1 year to construct. $3mm salvage value at end of 10 years New Plant Cost: Feasibility studies: $50,000 upfront (will be expended regardless of whether the project goes forward or not). Straight line over 5 years to zero, beginning at end of 1st year 1 million units (sales begin at end of 1st year and grow at 5% pa Depreciation Unit Sales thereafter) Price per Unit: COGS: Fixed costs: Working capital: $5.75 per unit, growing at 2% inflation per year 60% of Sales $150,000 per annum $300,000 incurred at end of first year and recouped at end of 10 years Cost of Capital: 11% Marginal Tax Rate: 25% 1. Forecast the project's after-tax cashflows for 10 years using excel 2. What is the NPV? 3. What is the IRR? 4. Which single variable (holding the others constant) has the greatest impact on the NPV? (change each of the discount rate, price per unit, COGS, inflation rate, and tax rate by 1% holding the other variables constant). 5. Create a 2-variable data table (columns and rows) showing NPV at 10%, 11%, and 12% cost of capital and 20%, 25%, and 30% tax rates. 6. Is this project is worth pursuing? Why or why not?
Answers: 2
Business, 22.06.2019 19:50, leannamat2106
At the beginning of 2014, winston corporation issued 10% bonds with a face value of $2,000,000. these bonds mature in five years, and interest is paid semiannually on june 30 and december 31. the bonds were sold for $1,852,800 to yield 12%. winston uses a calendar-year reporting period. using the effective-interest method of amortization, what amount of interest expense should be reported for 2014? (round your answer to the nearest dollar.)
Answers: 2
Business, 23.06.2019 02:30, nauticajanke03
The wall street journal reported that over a recent five-month period, a downturn in the economy has caused endowments to decline 23%. what is the estimate of the dollar amount of the decline in the total endowments held by these 10 universities (to the nearest billion)?
Answers: 3
Business, 23.06.2019 02:30, mcalepcrager
Robert just found out that he is going to be unemployed within a month because his factory has invested in a robotic factory line and his skills are no longer needed. this means that robert is . the gdp within country d has begun to decline. as a result of decreased production, thomas lost his job designing cars. this means that thomas is . raquel has just been offered a job, but she has decided not to take it because she feels her skills merit better pay and a better position. this means that raquel is .
Answers: 1
You are a financial analyst for a major consumer products company. They are considering the product...
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