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!
A beauty product company is developing a new fragrance named Happy Forever. There is a probability of 0.51 that consumers will love Happy Forever, and in this case, annual sales will be 1.09 million bottles; a probability of 0.39 that consumers will find the smell acceptable and annual sales will be 193,000 bottles; and a probability of 0.10 that consumers will find the smell unpleasant and annual sales will be only 45,000 bottles. The selling price is $36, and the variable cost is $11 per bottle. Fixed production costs will be $1.00 million per year, and depreciation will be $1.21 million. Assume that the marginal tax rate is 40 percent. What are the expected annual incremental after-tax free cash flows from the new fragrance?
Annual incremental cash flows $
As reported by the Bureau of Labor Statistics, the CPI for Airfare in 2263 was 583.9 (using a base year of 1914 = 100). The CPI for Airfare in 2264 was 615.8. Based on this data, what was the inflation rate of airfare from 2263 to 2264?
As a manager of an Italian clothing manufacturer, you are interested in buying a new high-speed production machine. There are two different companies – both based in the US – that sell this (identical) machine. Suppose you buy the machine from Compan..
What are examples of incremental cash flows?
Imagine that you are a divisional manager. Currently you are a member of a committee which is considering two product investments proposed by two other divisional managers: Joe and John. While walking over to the presentations, Joe seems rather arrog..
calculate the duration and the volatility of this bond.
If the market rate on the CD falls to 8.25 percent, what is its current market value?
Rock Inc. is planning to invest in the development of a new product which will take 5 years to develop and will cost $250,000 per year during the development stage. Thereafter, the new product is expected to generate cash flows of 350,000 per year fo..
The stock of Big Joe's has a beta of 1.58 and an expected return of 13.00 percent. The risk-free rate of return is 5.5 percent.- What is the expected return on the market?
The output rises to 55,000 units. What will the percentage change in operating cash flow be?
Bridget Jones has a contract in which she will receive the following payments for the next five years: $23,000, $24,000, $25,000, $26,000, and $27,000. She will then receive an annuity of $29,000 a year from the end of the 6th through the end of the ..
The PV of XYZ Corp.'s future operating free-cash flow is $500 million. It has debt outstanding of $30 million and cash and marketable securities of $10 million. It also owns an undeveloped tract of land recently appraised for $8 million. There are 5 ..
Which one of these statements related to depreciation is correct for a firm with taxable income of $121,600 and aftertax income of $74,200?
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