What should be your minimum selling price

Reference no: EM131970573

Question: Your engineering firm purchased a sub firm for $100 million (at MARR=15%) in hopes of selling in 7 years from now. you estimate a net cash flow decrease with an arithmetic gradient of 10 million per year starting in 5. there is expected to be a net loss of 7 million annually starting at the end of 1 year. what should be your minimum selling price in 7 years?

Reference no: EM131970573

Questions Cloud

List some of the problems with the use of roe : List some of the problems with the use of ROE, and in your own words, explain the nature of these problems.

Explain what weight should it use for debt : If the company has a $45.4 million market value of equity, what weight should it use for debt when calculating the cost of capital?

Network design proposal for a hotel : BN202 - Internetworking Technologies - Assignment - Network requirement analysis and plan -

Can you reject the teacher assumption : Imagine 20 students took the test and the 95% confidence interval of grades was (83, 90). Can you reject the teacher's assumption?

What should be your minimum selling price : Your engineering firm purchased a sub firm for $100 million (at MARR=15%) in hopes of selling in 7 years from now. you estimate a net cash flow decrease.

Confidence interval for the population mean : Construct a 98?% confidence interval to estimate the population mean when x=62 and s? = 11.7 for the sample sizes below.

Calculate the value of the x : Liz has just paid off all her student loans and she is ready to start saving for retirement.

Compute the nominal annual interest rate : An engineering firm has to borrow funds to pay your 16 weeks co-op salary for the summer. the firm borrows $500 from a bank that requires them to make a weekly.

Let x be a discrete random variable : Let X be a discrete random variable. If Pr(X8) = 1/5, then what is Pr(X=8)?

User Account

All Pages