Reference no: EM13765083
Bottled water continues to be a hot market. The ClearWater bottling company has decided to introduce Sparkle, a new line of bottled water. ClearWater expects to manufacture 10,000 bottles of Sparkle every day, 365 days per year.
It will cost ClearWater $5,000,000 for manufacturing equipment to produce Sparkle. The variable manufacturing cost for each bottle of Sparkle will be $0.25 the first year. This price is expected to increase at a geometric rate of 8% every year, e.g. variable cost per bottle in year 2 = $0.25 * ( 1 + .08) ^ 1 = $0.27, year 3 = $0.2916 and so on. Annual, fixed costs are $1,000,000. Assume that fixed and variable manufacturing costs occur at the end of each year.
Each bottle of Sparkle results in an income of $1.00. Assume that every bottle manufactured in a year is sold in the same year.
Sparkle is expected to have a 10-year life, at which time the manufacturing equipment will have a salvage value of $650,000.
Use an MARR of 12% per year compounded annually to determine the Net Present Worth of manufacturing Sparkle. Use a 10-year study period. Include the initial cost of the equipment, annual manufacturing costs, annual income and the salvage value of the equipment.
|
Capital asset pricing model claims
: Briefly state what the Capital Asset Pricing Model (CAPM) claims about:
|
|
Computer-based order entry system
: Your firm is contemplating the purchase of a new $545,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $53,000 at the end of that time. You will save $295,000 before..
|
|
Database in sql server
: Postings from students in online courses. The database should include info on Students, Courses, Semesters, Topics, and Postings. Topics are created by an instructor and are specific to a particular class.
|
|
Focusing on the how of violence
: Read the two articles "Shooting in the Dark", and "Focusing on the How of Violence" and write two separate analytical summaries
|
|
Determine the net present worth of manufacturing sparkle
: Bottled water continues to be a hot market. The ClearWater bottling company has decided to introduce Sparkle, a new line of bottled water. ClearWater expects to manufacture 10,000 bottles of Sparkle every day, 365 days per year. Use an MARR of 12% pe..
|
|
Advise brian on the tax consequences
: Advise Brian on the tax consequences regarding the above-mentioned transactions for the year 2013/2014 tax year - Advise Morgan Brothers whether the amount of $250,000 is income for their business.
|
|
Potential cost of tuition and materials
: Consider not only the potential cost of tuition and materials, but also if release time from work will be necessary for your course(s), seminars, or other opportunities you find.
|
|
Expected return-what must the beta of this stock be
: A stock has an expected return of 14.9 percent, the risk-free rate is 5.85 percent, and the market risk premium is 7.6 percent. What must the beta of this stock be? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g.,..
|
|
Unethical police decisions or immoral practices
: Research and find a U.S. Supreme Court case that addresses unethical police decisions or immoral practices by the police. Provide a brief synopsis of the case and discuss how the Supreme Court views procedural justice and/or police misconduct
|