Calculate the net income each year for quick serve

Assignment Help Financial Management

Reference no: EM131502875

Quick Serve produced 100 units of popular ice cream makers this year (0). The cost of production for the ice cream makers is $2,000 per unit. It will sale 50 units next year at a price of$2,750 per unit, and the other 50 units at a price of $3,000 per unit in two years. It takes a full year for it to collect its bills from the customers. Ignore tax, or possible sales in earlier or later years.

a) Please calculate the net income each year for Quick Serve, from year 0 to year 3.

b) What is Quick Serve’s net working capital in each year from year 0 to year 3, and what is the change in net working capital each year?

c) What are the cash flows in each year from year 0 to year 3?

d) Assuming a discount rate of 9%. Please calculate the NPV for this project.

e) What is the IRR for this project?

f) What is the payback period?

g) What is the discounted payback period?

h) What is the profitability index?

Reference no: EM131502875

Questions Cloud

Produce certain units of the warthog system : The following information pertains to the estimated number of labor hours required to produce certain units of the WARTHOG system.

Many foreign firms from both developed : Recently, many foreign firms from both developed and developing countries acquired high-tech U.S. firms.

What is the future worth of the equipment : Alpha Electronics can purchase a needed service for $85 per unit. What is the future worth of the equipment if the expected production is 200 units/year?

Since future economic conditions : Since future economic conditions in Thailand are uncertain.Holt would like to know how critical the salvage value is in alternative you think is most feasible?

Calculate the net income each year for quick serve : Calculate the net income each year for Quick Serve, from year 0 to year 3. What is the profitability index?

What is the price of these three bonds in dollars : What is the price of these three bonds in dollars?

Which offer should you take if current rates : Which offer should you take if current rates are 14%? Which offer should you take if current rates are 5%?

Start new government program : If you wanted to start a new government program, what types of outcomes would you expect?

Calculate the present value of annual payments : Calculate the present value of annual payments of $3,000 per year for ten years at 8%:

User Account

All Pages