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!
Vixen is considering starting a small catering business. She would need to purchase a delivery van and equipment costing $130,000 to operate the business and another $70,000 for inventories and other working capital needs. Rent for the building to be used by the business will be $35,000 per year. Vixen's marketing studies indicate that the annual cash inflow from the business will amount to $120,000. In addition to the building rent, annual cash outflow for operating costs will amount to $40,000. Vixen wants to operate the catering business for only six years. At the end of year 6, the working capital investment would be recovered. Vixen uses a 16% discount rate. Ignore taxes.
Required: Problem 1: Would you advise Vixen to make this investment? Show your calculations.
Problem 2: What is the IRR on this project?
Problem 3: Assume now that Vixen believes there will be some salvage value for the equipment, but she isn't sure how much. What would the salvage value have to be for this to be a good investment?
Recognize types of responsibility centers as a cost center, a profit center, a revenue center or an investment center.
Cash payments are 60% in the month of the purchase, and 40% in the following month. The budgeted cash payments for June would be
Prepare Production Budget for second quarter and third quarter. It is decided that finished kits inventories are to be 25000, at the end of the second quarter
What can you do to prevent something like this from happening? your company proposal has been evaluated by the procurement office on past performance.
That price includes a 25% markup by the retailer and a 20% wholesale margin. To the nearest percent what is Lida Baday's selling price?
What would be the cost per equivalent unit for conversion costs for September on the Smelting Department's production report
Describe about your employer or a favorite business you personally visit or are a patron (Starbucks, Netflix, Planet Fitness, etc.)
The moab corporation has sales of $300,000 and expenses of $175,000 last year. How much was the after-tax net cash inflow
If rent is a fixed cost, and if production is expected to drop to 7,000 units in September, what is the expected cost of rent in September?
Compute the present value of the cash flows from 1996 to 2000, at the end of 1995 and compute the value of the firm operations.
Find Explain your weightages. Weight the individual capital source costs by their percentage in the company's total capital structure.
Explain your understanding of how the breakeven analysis applies to the Lowe's Expansion Plan Analysis you are working on
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