User Account

All Pages

What is the net present value of the investment

Assignment Help Accounting Basics
Reference no: EM132763103

Question: X Company is considering conducting an immediate advertising campaign in order to increase sales of one of its more popular products. The marketing department did market research last year that suggested the company could sell 5,000 more units of this product; the cost of this research was $10,400.

The cost of the advertising campaign would be $48,500. The product's contribution margin is $14.00 per unit; additional annual fixed costs would be $17,000. The increased sales are expected to last for 4 years.

Assuming a discount rate of 5%, what is the net present value of this investment?

Reference no: EM132763103

Questions Cloud

What is the company wacc for dinklage corp : Dinklage Corp. has 4 million shares of common stock outstanding. The current share price is $70, What is the company's WACC?
What goal of the financial manager of a corporation : What is the goal of the financial manager of a corporation? What actions can the financial manager do to reach the goal in your above answer?
What is the net present value of investment for comfy home : What is the net present value of this investment? The system would cost $40,000 upfront. It will generate net cash flows of $3,300 per year for 15 years.
Find what is the payback period of the investment : Find What is the payback period of this investment?The system would cost $40,000 upfront. It will generate net cash flows of $3,300 per year for 15 years.
What is the net present value of the investment : X Company is considering conducting an immediate advertising campaign in order to increase sales of one of its more popular products. The marketing department.
Should company replace? year-old machine and why : The CCA rate applicable to both machines is 30%?; neither machine will have any? long-term salvage value. Should your company replace its? year-old machine?
What judicial approaches might be used to decide the case : Assume Miller Energy negotiated a $10 million loan with a financial institution during 2015. Subsequent to the SEC's finding of accounting fraud in 2015.
Find what current value of the stock at end of three years : Find What is the current value of the stock and the expected stock price at the end of each of the next three years? What is the expected dividend yield
What is the cost per gallon of product : A joint process produces three products at the split-off point. Product A can be sold without further processing at the split- off point. Products B and C.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd