Reference no: EM133111405
Questions -
Q1. You are tasked with finding the present value of a new machine project you will buy for manufacturing. The initial cost of the machine is $4,250,000 and the project life is 13 years. Every year this machine should generate $610,000 in savings. Assume a 14% MARR for your company. What is the NPV?
Q2. To help Nike, you are going to tell the marketing department how many pairs of shoes they would need to sell if they develop their Space Hippie Brand. You get the following Data:
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Initial Investment Plant and Equipment
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$38,000,000.00
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Marketing and Sales Support (yr 1-4)
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$4,980,000.00 (going down by 20% per year)
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Net Contribution Margin Yr 1-5
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$6,240,000.00 (going up by 25% per year)
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Net Contribution Margin Yr 6-8
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Steady at Year 5
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If the project life is 8 years and Nike's MARR is 12.2%, what is the NPV of this project?
Q3. Nike is trying to promote their new fitness app. To do this they will give out free memberships at the start of the project to generate interest. This initial cost is expected to be $2,400,000. Expenses will be $5,500 per year increasing by 6% each year for 15 year total project life. By building up a solid customer base, Nike estimates $180,000 increasing by 5.5% per year in profits. Assuming a 7% return, what will be the NPV for this project?
Q4. Nike has hired an external consultant like Crowe to provide a solution to their warehousing problem now that they sell so much in Nike.com. The project will cost the company $4,150,000 now, require $380,000 in support in year 1, and $235,000 in year 2. The company expects a benefit of $495,000 in year 1 increasing by 8% per year for the foreseeable future. What is the Net Present Value of the project at a MARR of 11% and project life of 10 years?
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What amount reported as unappropriated retained earnings
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Determining the market portfolio
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What is the corporation cost of debt
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What is the dollar of margin put up by the client
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What will be the npv for this project
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Find total asset turnover ratio
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Form of business structure
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What is the intrinsic value of the share
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Closing price of the shares on the fiscal year
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