Examine the annual ocf for the project

Assignment Help Finance Basics
Reference no: EM131997298

Question: Meld Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $25,083, and the company expects to sell 1,551 units per year. The company currently sells 2,068 units of its existing model per year. If the new model is introduced, sales of the existing model will fall to 1,800 units per year. The old board retails for $32,742. Variable costs are 40 percent of sales, depreciation on the equipment to produce the new board will be $1.16 million per year, and fixed costs are $1.1 million per year. If the tax rate is 35 percent, what is the annual OCF for the project?

Reference no: EM131997298

Questions Cloud

Washington consensus approaches : How does this sort of project enable development in a different way than the traditional "aid" or "Washington consensus" approaches?
Define the difference between jail and prison : Define the term rabble as it relates to the concept of American jails being a form of "rabble management."
What is the minimum number of bonds meccs has to issue : MECCS Inc. has decided to raise $50 million by issuing 11 year semiannual coupon bonds with coupon rate of 6.30 percent, yield to maturity of 7.24 percent.
The constitutional rights of prisoners : The Supreme Court has held that prisons may restrict the constitutional rights of prisoners where the restriction is connected to a legitimate penological.
Examine the annual ocf for the project : Meld Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $25,083, and the company expects.
Causes for congressional gridlock : Identify and explain in some detail the causes for congressional gridlock and any solutions you come across in doing your research.
Cultural differences and the application of the law : Having said that, how far beyond the normal course of actions that you would take should you go to take into account cultural differences?
How long does the company have to wait : Meadow Brook Manor would like to buy some additional land and build a new assisted living center. The anticipated total cost is $27 million.
Why do you think using legal reasoning is important : Why do you think using legal reasoning is important? How does the legislative and executive branches keep justices accountable for using legal reasoning?

Reviews

Write a Review

Finance Basics Questions & Answers

  How much can the investor expect in interest every six month

Omar Corp issued just issued a 10 percent, 20 year bond with a $1000 par value that pays interest semi-annually. How much can the investor expect in interest every six months?

  Examine the key reasons why a business may not want to hold

Examine the key reasons why a business may not want to hold too much or too little working capital. Provide two examples that illustrate the consequences of either situation.

  Best alternative for peter out of the following choices

However, the $10000 he has right now is needed for urgent repairs to his home, repairs that will cost at least $15000 if he delays them for a year. What is the best alternative for Peter out of the following choices?

  What are market cap and beta

What are market cap and Beta and why do investors care about this information?

  Calculate hassans madhatter total assets

Last year, Hassan's Madhatter, Inc., had an ROA of 6.2 percent, a profit margin of 10.23 percent, and sales of $20 million.

  What is the price of call option written on google

Google (GOOG) is trading for $1,032.95 and has an annual return standard deviation of 20%. Assuming the risk free rate is 3%, what is the price of call option written on Google with a strike price of $1,040 and a time to expiration of 3 months?

  Calculate the yield to maturity of the bonds today

Calculate the yield to maturity of these bonds today. If these bonds are now called, what is the actual yield to call for the investors who originally purchased them?

  Contrast the theories of absolute and comparative advantage

Compare and contrast the theories of absolute and comparative advantage.- How does the Heckscher-Ohlin (HO) theory build on the earlier work of absolute and comparative advantage?

  What is the expected number

What is the probability that 4 or more live in poverty? What is the probability that 3 live in poverty? What is the expected number (mean) that live in poverty

  Calculate the value of the bond if your required return

Research Market Data on Bonds Research the current (within the last two months) market data on bonds from AT&T, Dell, and IBM. Assume each bond has a par value of $1000, unless otherwise indicated. AT&T Dell IBM Coupon Maturity Frequency Rating Requi..

  What is the sustainable growth rate?

What is the sustainable growth rate?

  Explain your reasoning and record any necessary entry

Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd