Reference no: EM13945967
The Sopchoppy Motorcycle Company is considering an investment of $600,000 in a new motorcycle. They expect to increase sales in each of the next three years by $400,000, while increasing expenses by $200,000 each year. They expect that they can carve out a niche in the marketplace for this new motorcycle for three years, after which they intend to cease production on this motorcycle. Assume the equipment is depreciated at the rate of $200,000 each year. Sopchoppy's tax rate is 40%.
a. What is the internal rate of return of this project if they sell the manufacturing equipment for $200,000 at the end of three years?
b. What is the internal rate of return of this project if they sell the manufacturing equipment for $100,000 at the end of three years?
c. What is the internal rate of return of this project if they sell the manufacturing equipment for $300,000 at the end of three years?
d. Suppose the following distribution of possible sales prices on the equipment is developed:
|
Sales Price
|
Probability
|
|
$100,000
|
25%
|
|
$200,000
|
50%
|
|
$300,000
|
25%
|
What is the expected internal rate of return for Sopchoppy? What is the standard deviation of these possible internal rates of return?
|
Describe five specific areas to improve company competitve
: Select an advantage you identified, and provide a detailed scenario of how it could be leveraged to improve a company's competitive advantage.
|
|
Analyze the factors that drive supply and demand
: Analyze the factors that drive supply and demand, different types of market structures in a free enterprise system, and factors of stability in a nation's economy - Examine the private enterprise systems, drivers of change on the system, ethical a..
|
|
Discussion alternate approaches and why your recommendation
: Write a 500-word memo (APA Format) to the executive at Acer or Hewlett-Packard providing your recommendation for their organization that includes the following: ?A brief description of the situation
|
|
Component of the linear acceleration of the particle
: At the instant specified the magnitude of the vertical component of the linear acceleration of the particle at the point B was A. 4.50 fps per sec. C. 7.50 fps per sec. B. 5.50 fps per sec. D. 9.0 fps per sec.
|
|
What is the expected internal rate of return for sopchoppy
: What is the internal rate of return of this project if they sell the manufacturing equipment for $200,000 at the end of three years? What is the internal rate of return of this project if they sell the manufacturing equipment for $100,000 at the ..
|
|
Describe the key characteristics of a whistleblower
: Determine the underlying causes for passage of the Sarbanes-Oxley Act and determine protections afforded to whistleblowers and use technology and information resources to research issues in law, ethics, and corporate governance.
|
|
Composition cells-stress cells
: Please include images of: composition cells, stress cells, concentration cells, coatings, inhibitors, sacrificial anodes, impressed voltages, anodic protection, cold worked grain structure and recrystallized grain structure.
|
|
What role should social media play in personal lives
: Persuasive Essay- Topic: What role should social media play in personal and professional lives
|
|
How could the two cash flows be compared or combined
: What do you think about the following statement? "I am going to receive $100 two years from now and $200 three years from now, so I am getting a $300 future value." How could the two cash flows be compared or combined?
|