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 leading manufacturing company in the industrial space is considering a new service of AI Predictive Maintenance. The company will provide this service by selling licences. The firm has already spent $15 million in market research to estimate potential revenues and costs, and another $10 million to study the viability and the cost of developing the technology. Market research suggests that the total addressable market next year (year 1) is 200 licenses and that the firm should capture 25% of the market, thus selling 50 licences. The number of licences sold will grow by 20% between year 1 and year 2 and 20% again between year 2 and year 3. In year 4 the market is expected to reach maturity, and the growth in the number of licenses will slow down to 2% from then onwards. The annual price of each license is expected to be $1.5 million next year and will increase 1% per year after that. The costs to operate this business are expected to be equal to 65% of the sales. To develop this new service, the company would need to invest $300 million in R&D this year (year 0). There is no depreciation and the project will require $5 million in working capital from the first year onwards. The tax rate is 35% and the project's cost of capital is 10%. Note: Report your results in millions of dollars (do not enter the $ sign, use a three-digit precision in your own computations, and a two-digit precision in the result).
Recently Apple Inc. announced a new system for merchants to accept electronic payments (credit and debit cards). Almost immediately several large corporations announced that they would not accept the Apple system. Please give us an update on t..
Assuming that Dewey's cost of capital is 12% EAR, what is the NPV of his retainer offer?
Q1. ____ involves allocating ownership of the risk to another party. Q2. A project manager can chart the probability and impact of risks on a ____.
What are the firm's current capital structure weights? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
As a business owner making a final decision regarding the international aspects of a business decision, you may decide to set up a table with the risks and weigh their relative importance against the rate of return you foresee. You also need to pu..
Explain what the residual of a regression is.
If this project was instead undertaken by a similar U.S.-based company with the same risk-adjusted cost of capital, what would be the net present value and rate of return generated by this project? What is the expected forward exchange rate 1 year fr..
Explain the advantages and disadvantages of setting up a new business as Sole Proprietorship, a Partnership or a Corporation.
year-to-date oracle had earned a 1.40 percent return. during the same time period valero energy earned 7.68 percent and
laserclok corporation paid a dividend for 50 years until it experienced financial difficulty three years ago at which
The British Petroleum Company (BP) is considering investing in a machine. The machine will cost £3,000,000 and will be depreciated using 20% reduced balance met
At the end of 2011 Home Depot's total capitalization amounted to $28,992 million. In 2012 debt investors received interest income of $635 million. Net income to shareholders was $4,526 million. (Assume a tax rate of 35%.)
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