Otobai company in osaka japan is considering the

Assignment Help Finance Basics
Reference no: EM13479063

Otobai Company in Osaka, Japan is considering the introduction of an electrically powered motor scooter for city use. The scooter project requires an initial investment of ¥16.8 billion. The cost of capital was assumed to be 9%. The initial investment can be depreciated on a straight-line basis over the 10-year period, and profits are taxed at a rate of 50%.

Consider the following estimates for the scooter project.

Market size 1.28 million Market share 0.1 Unit price ¥580,000 Unit variable cost ¥ 540,000 Fixed cost ¥ 2.18 billion

Reference no: EM13479063

Questions Cloud

Compute the best-case and worst-case npv assuming the : the flying toaster appliance company is considering a new project. the equipment will cost 30000 have a six-year life
Again the topic is smoking and the thesis statement is : i need you to write an essay about smoking. the essay must be 7 paragraphs and give an example in each paragraph about
A stock has an expected return of 10 what is its beta : a stock has an expected return of 10. what is its beta? assume the risk-free rate is 7 and the expected rate of return
The target capital structure for jowers manufacturing is 49 : the target capital structure for jowers manufacturing is 49 common stock 10 preferred stock and 41 debt. if the cost of
Otobai company in osaka japan is considering the : otobai company in osaka japan is considering the introduction of an electrically powered motor scooter for city use.
A stock is expected to pay 125 per share every year : a stock is expected to pay 1.25 per share every year indefinitely and the equity cost of capital for the company is
In early 1990boeing co decided to gamble 4 billion to build : in early 1990boeing co. decided to gamble 4 billion to build a new long distance 350-seat wide body airplane called the
It is expected that this dividend will grow by 3 per year : spacefood products will pay a dividend of 2.40 per share this year. it is expected that this dividend will grow by 3
We want simple ladder diagram for asphalt plants and : we want simple ladder diagram for asphalt plants and concrete mixers for full automatic operation it is always used

Reviews

Write a Review

Finance Basics Questions & Answers

  Which machine should you choose

If the company plans to replace the machine when it wears out on a perpetual basis, which machine should you choose?

  Compute the realized rate of return for investors

Compute the realized rate of return for investors who purchased the bonds when they were issued and who surrender them today in exchange for the call price. Round your answer to two decimal places.

  What is the risk neutral probability p

A stock is currently priced at $100. Over each of the next two three month periods it is expected to increase by 10% or fall by 10%. Consider a six month call option with a strike of $95. The risk free rate is 8% per annum.

  What will occur to margin account of investor who holds one

the margin requirement on the samppasx 200 futures contract is 10 and the stock index is currently 4400. each contract

  What will be the approximate population of the united states

What will be the approximate population of the United States, if its current population of 275 million grows at a compound rate of 2 percent annually for 25 years?

  Change is considered by many as the new normal effective

change is considered by many as the new normal. effective change management must be part of an organizationrsquos dna.

  Compare and contrast potential financial outcomes

Compare and contrast three potential financial outcomes for ExxonMobil's proposed initiative. Evaluate your findings to determine the most likely outcome.

  Consider a finance company with the following type of

consider a finance company with the following type of business. the firm provides small corporations with short-term

  What are the total expenses of the issue as a percentage

What are the total expenses of the issue as a percentage of total value (at retail)? b. If the firm wanted to net $18 million from this issue, how many shares must be sold?

  Based on the corporate valuation model the value of a

based on the corporate valuation model the value of a companys operations is 900 million. its balance sheet shows 70

  Describe three techniques that build trust and a lasting

1.describe three techniques that build trust and a lasting partnership. give an example for each technique and how it

  Compute expected return and standard deviation

The expected return for security is 20 percent and standard deviation- 25.7 percent. Compute expected return and standard deviation for security A

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