Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $740 per set and have a variable cost of $340 per set. The company has spent $144,000 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 8,900 sets of its high-priced clubs. The high-priced clubs sell at $1,040 and have variable costs of $640. The company will also increase sales of its cheap clubs by 10,400 sets. The cheap clubs sell for $380 and have variable costs of $200 per set. The fixed costs each year will be $9,040,000. The company has also spent $1,050,000 on research and development for the new clubs. The plant and equipment required will cost $28,280,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1,240,000 that will be returned at the end of the project. The tax rate is 40 percent, and the cost of capital is 10 percent.
Suppose you feel that the values are accurate to within only ±10 percent. What are the best-case and worst-case NPVs? (Hint: The price and variable costs for the two existing sets of clubs are known with certainty; only the sales gained or lost are uncertain.)
Productivity is the major driver of economic growth in the United States, accounting for about half of the increase in real GDP over time. Between 1996 and 2001, productivity showed no trend and averaged about 2.7 percent. In 2002, productivity incre..
Estimate each of these alternatives from the perspective of economic efficiency, equity, and the likely long-term impact on the firm.
q1. what steps can a government take to ensure that sustainable development is always considered in assessing which
Using the power operations on a typical calculator, find the period interest rate to three digits after the decimal point in percentage format that results in the F/P factor being 2.85 after 16 periods.
Currently AIDS is spreading in china and India. Govt. of these nations fail to stop spread of AIDS what are likely consequences for future economic growth in china and India.
An engineering firm can lease a measurement system for $1,000 per month or purchase one for $15,000. The leased system will have no monthly maintenance cost, but the purchased one will cost $80 per month. At an interest rate of 0.5% per month, how ma..
EmKay Fertilizer Company wishes to install a brand new equipment that costs $100,000 and has a life of 4 years. At the end of the 4-year period, it is estimated that it will cost the company $10,000 to dispose of the equipment. If the annual interest..
A major electronics manufacturer expects to generate additional revenue from its recently won government contract. The company forecasts that the revenue will be $108,937 million in the first year, but will decline by $2,295 million every year for th..
Provide an example of costly monitoring in the healthcare workplace. Can you think of an employment contract that would allow a reduction in monitoring without a reduction in quality?
q. a firm in a purely competitive business is currently producing a 1000 unitday at a total cost of 450. if the firm
As Disney, Inc. was set to open the gates to its Hong Kong theme park, the company was broadsided by protests and calls for boycotts by environmental groups. Sparking the controversy was the pre-park opening release of its food menu, which included s..
A person signs an agreement to offer personal services over a period of five years. The company that hires him, offered to pay him an advance of $30,000 for his professional services at the moment of signing the contract and five additional payments ..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd