Find net present value of the special order

Reference no: EM132088125

Question: X Company has an opportunity to accept a special order that will result in immediate profit of $64,000. The marketing manager believes that if X Company accepts the order, the company will lose regular customers. Specifically, she believes the effect will be lost profits of $8,500 in each of the next 5 years. Assuming a discount rate of 5%, what is the net present value of accepting the special order?

Reference no: EM132088125

Questions Cloud

Return the car to the location most convenient : Rent'R Cars is a multisite car rental company in the city. It is trying out a new "return the car to the location most convenient for you" policy to improve

Prepare journal entries for pike corporation : Prepare journal entries for Pike Corporation to account for its investment in Salmon Corporation for 2010 and 2011

Determine the parameters of the cost function : Expected production in 2017 is 43,500 units. Using the high-low method with the 2015 and 2016 data to determine the parameters of the cost function.

Importance for ensuring short-term recovery from disaster : What would be your top three priorities in order of importance for ensuring short-term recovery from a disaster? Why?

Find net present value of the special order : X Company has an opportunity to accept a special order that will result in immediate profit of $64,000. The marketing manager believes.

Preconceived thoughts or beliefs can affect whether : Preconceived thoughts or beliefs can affect whether or not we hear opinions or information that disagree with our own.

How are budgets used for a company or in government : How are budgets used for a company or in government? What would your suggestions be to balance our economic budget

What is the internal rate of return : X Company is considering launching a new product. The company believes unit sales of this product will be 7,500 in each of the next 4 years.

What price should the company charge : Total investment of AAA division $200,000. The minimum desired return on investment equals to 20%. What price should the company charge

User Account

All Pages