User Account

All Pages

After-tax operating margin on sales

Assignment Help Business Management
Reference no: EM132346973

You are the owner of a small bar, The World, and you are considering opening a bakery in a vacant area in the back of the store. You estimate that it will cost you $52,634.00 to set up the bakery and that you will generate $10,531.00 in after-tax cash flows in for the life of the store (which is expected to be 10 years.) The one concern you have is that you have limited parking; by opening the bakery you run the risk of not having enough parking for customers who enjoy your bar. You estimate that the lost sales would amount to $3,464.00 per year and that your after-tax operating margin on sales at the bar is 53.00%. If your discount rate is 14.00%, what is the NPV of opening the bakery?

Reference no: EM132346973

Questions Cloud

Contribute on a monthly basis : An insurance salesperson is attempting to sell you a policy that you need to contribute on a monthly basis, $150, for 10 years. The policy will pay a guaranteed
Estimated monthly financing requirements : Liz's Health Food Store has estimated monthly financing requirements for the next six months as follows:
Average outstanding balance : Credit Card A charges an annual effective interest rate of 21.56% and a $100 annual fee. If your average outstanding balance is $2,000
What is the total value of project : If we add the PV of the side effects to the NPV, what is the total value of this project? (express in terms of millions)
After-tax operating margin on sales : You estimate that the lost sales would amount to $3,464.00 per year and that your after-tax operating margin on sales at the bar is 53.00%.
What are the riskiest components of currency exchange : What are the riskiest components of currency exchange? How is it measured and how can companies reduce or control the potential risk?
Examine and review the MacVille policy and procedure : BSBSUS501 Develop Workplace Policy and Procedures For Sustainability Assignment, Victoria University, Australia. Examine and review the MacVille policy
Shares remaining after recapitalization : Dye Trucking raised $130 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $7. If Dye had 50 million shares of stock
Describe three ways to manage stress : LEVEL 2 CERIFICATE IN PREPARING TO WORKING IN ADULT SOCIAL CARE-safe working practices in health and social care settings

Reviews

Write a Review

Business Management Questions & Answers

  Mcclelland human motivation theory

What is the major difference between McClelland's Human Motivation Theory, Maslow's model of motivation and Herzberg's model of motivation?

  Working with emotional intelligence

Discuss what change management principles from the Working with Emotional Intelligence have been incorporated into your team strategy.

  What can teresa do to resolve the problem

Other than quitting, what can Teresa do to resolve the problem? What learning and perception factors should she consider as she analyzes the situation?

  Find a case study that discusses procurement

Find a case study that discusses procurement, and then discuss and analyze the procurement cycle. Using the library, Internet, and your course materials, write a document of 4-5 pages that addresses the above tasks.

  Trade-offs to the strategy

For years, Ferrari has been known as the manufacturer of expensive luxury automobiles.  As Ferrari considers this trading-down strategy, what branding strategy would you recommend? What are the trade-offs to consider with your strategy?

  What are the future challenges for amazon

What are the future challenges for Amazon in terms of technology?

  Describe the fit between the runners

Based on the principles of the SLII® model, how would you describe the runners in Group 1? What kind of leadership do they want fromDavid, and what kind of leadership does David seem prepared to give them? How would you describe the fit between th..

  What are the components of the communication process

What are the components of communication process? Describe a hypothetical business communication scenario, explaining how each of the communication components might impact the ability for all participants to arrive at shared meaning.

  Consider implementing in buying a house

Imagine you are a public administrator who has just been promoted to a higher position but must relocate to another city and purchase a different home. Using the five distributing bargaining skills, present the steps and various aspects you would ..

  Comment on the level of risk and return

Comment on the level of risk and return on the portfolio in comparison to the market(include an explanation of what beta represents and the risk-return trade

  Develop an argument regarding the significance of marketing

Develop an argument regarding the significance of marketing to organizational success in the 21st century. Assume you are charged with establishing a marketing campaign for a product that is in a mature stage of the product life cycle. Review the 'Ma..

  Explain and evaluate corporate culture at southwest airlines

Explain and evaluate corporate culture at Southwest Airlines. What performance indicators does this culture target?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd