Can we get rid of the middleman

Assignment Help Financial Management

Reference no: EM131077868

Assume that you have a local retail furniture store in your area that sells direct to the customer thereby eliminating the middleman. Assume that the store does not manufacture the furniture. The store claims that it passes these cost savings on to you! What do you think? Can we get rid of the middleman? What is at issue here?

Reference no: EM131077868

Questions Cloud

Initial cash flow of the project for this building : Your firm purchased a warehouse for $335,000 six years ago. Four years ago, repairs were made to the building which cost $60,000. The annual taxes on the property are $20,000. what value, if any, should be included in the initial cash flow of the pro..

Compute the EAC for both machines : You are evaluating two different silicon wafer milling machines. The Techron I costs $258,000, has a three-year life, and has pretax operating costs of $69,000 per year. If your tax rate is 35 percent and your discount rate is 9 percent, compute the ..

What are the current carrying costs : Louise Manufacturing uses 2,600 switch assemblies per week and then reorders another 2,600. The relevant carrying cost per switch assembly is $10.50, and the fixed order cost is $1,300. What are the current carrying costs? Calculate the economic orde..

Long term debt and preferred stock : A manufacturing facility at a cost of $80MM. is looking for a smart investment decision to expand the company. Analysis has indicated there would be $16,000,000 in Operating cash inflows (savings) each year for the first 5 years. Preferred stock – Fi..

Can we get rid of the middleman : Assume that you have a local retail furniture store in your area that sells direct to the customer thereby eliminating the middleman. Assume that the store does not manufacture the furniture. The store claims that it passes these cost savings on to y..

Average accounts receivable figure : Skye Flyer, Inc., has weekly credit sales of $48,400, and the average collection period is 18 days. What is the average accounts receivable figure?

How much interest are you paying implicitly : You place an order for 320 units of inventory at a unit price of $180. The supplier offers terms of 3/15, net 30. How long do you have to pay before the account is overdue? Days until overdue days a-2 If you take the full period, how much should you ..

Calculate WACC using market value weights : WACC The Patrick's Company's year-end balance sheet is shown below. Its cost of common equity is 16%, its before-tax cost of debit is 13%, and it marginal tax rate is 40%. Assume that the firms long term debt sells at par value. The firm has 576 shar..

What is the reduction in outstanding cash balances : It takes Cookie Cutter Modular Homes, Inc., about six days to receive and deposit checks from customers. Cookie Cutter’s management is considering a lockbox system to reduce the firm’s collection times. What is the reduction in outstanding cash balan..

User Account

All Pages