Find irr if the new product is launched

Reference no: EM132088160

Question: X Company is considering launching a new product. The company believes unit sales of this product will be 8,500 in each of the next 4 years, and that the contribution margin will be $6.20 per unit. Additional fixed costs will be $19,642. Equipment costing $120,000 will have to be purchased; the equipment will have no salvage value at the end of 4 years.

What is the internal rate of return if the new product is launched?

Reference no: EM132088160

Questions Cloud

Evaluate what must next year revenue be : Assuming a tax rate of 30%, what must next year's revenue be in order for X Company to earn after-tax profits of $21,000?

Prepare a schedule of cost of goods manufactured : Of the $105000of manufacturing overhead, $15000 is variable and $90,000 is fixed. Prepare a schedule of cost of goods manufactured

What is the return on equity earned by the company : What is the return on equity earned by the company? Based upon this return, is the company picking good products or services?

Research transactiona and transformational leadership : Research transactiona and transformational leadership. What are the differences between the two styles?

Find irr if the new product is launched : X Company is considering launching a new product. The company believes unit sales of this product will be 8,500 in each of the next 4 years.

How much income must usco include in its gross income : Assume that the effective Canadian tax rate on CanCo's income is 40%. MexCo purchases toys from USCo and resells them in Mexico and Guatemala.

Evaluation of consumer directed care : Evaluation of consumer directed care in aged care. Clearly and concisely evaluates the way that consumer directed care has been adopted in aged care.

What would be the allocation of period costs : X Company, a merchandiser, buys and sells two different products, 1 and 2. The firm uses an activity-based costing allocation system to allocate.

Identify and describe the three purposes of research : Which one may be the best choice for a personal research topic or area of interest? How might you go about collecting data on the topic?

User Account

All Pages