Reference no: EM131854071
McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $820 per set and have a variable cost of $420 per set. The company has spent $152,000 for a marketing study that determined the company will sell 56,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 9,700 sets of its high-priced clubs. The high-priced clubs sell at $1,120 and have variable costs of $720. The company will also increase sales of its cheap clubs by 11,200 sets. The cheap clubs sell for $460 and have variable costs of $240 per set. The fixed costs each year will be $9,120,000. The company has also spent $1,130,000 on research and development for the new clubs. The plant and equipment required will cost $28,840,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1,320,000 that will be returned at the end of the project. The tax rate is 35 percent, and the cost of capital is 10 percent.
Calculate the payback period. (Do not round intermediate calculations. Round your answer to 3 decimal places, e.g., 32.161.)
Payback period years
Calculate the NPV. (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
NPV $
Calculate the IRR. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
|
Reformulate the flagship coke product and relaunch
: In 1985, Coca-Cola reformulate their flagship Coke product and relaunched it - but was that the right decision? Now it's your turn to determine.
|
|
True values of a deductive argument
: 1. if know just the true values of a deductive argument's premises, then you will know whether the argument is sound T or F?
|
|
What is net present value of this investment
: A capacity alternative has an initial cost of $75,000 and $35,000 salvage value. what is the net present value of this investment?
|
|
Explain and analyze two key duties of hospitals under emtala
: Explain and analyze two key duties of hospitals under EMTALA. Analyze the purpose of Article 25 of the 1948 UDHR and the Constitution of the WHO.
|
|
Calculate the payback period-NPV and IRR
: McGilla Golf has decided to sell a new line of golf clubs. Calculate the payback period. Calculate the NPV. Calculate the IRR.
|
|
Consider one mole of an ideal gas with v degrees
: Consider one mole of an ideal gas with v degrees of freedom per molecule and pressure and volume p, V. In terms of v, p and V,
|
|
Ideal gas that has initial pressure and volume
: 1. Consider an ideal gas that has initial pressure and volume pi, Vi, and undergoes isothermal expansion to volume Vf. Find the following in terms of pi, F.
|
|
Five degrees of freedom
: Consider an ideal gas whose molecules each have five degrees of freedom. It starts out at pressure and volume p1, V1, is isothermally expanded to volume
|
|
Ideal gas having initial pressure and volume
: Consider an ideal gas having initial pressure and volume p1 , V1 . In terms of p1 , V1 , and y , write down an expression for the variation of p with V during
|