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!
Q. Evlaute Expected value of sales volume?
(17500 × 0·3) + (20000 × 0·6) + (22500 × 0·1) = 19500 units
Expected NPV = (((19500 × 1·35) - 10000) × 3·605) - 50000 = $8852
While the expected net present value is positive the project appears to be acceptable. From earlier examination we know that the NPV is positive at 20000 per year and the NPV will therefore as well be positive at 22500 units per year. The NPV of the nastiest case is
(((17500 × 1·35) - 10000) × 3·605) - 50000 = ($882)
The NPV of the finest case is
(((22500 × 1·35) - 10000) × 3·605) - 50000 = $23452
There is therefore a 30% chance that the project will produce a negative NPV a fact not revealed by considering the expected net present value alone. The expected net present value isn't a value that is likely to take place in practice it is perhaps more useful to know that there is a 30% chance that the project will produce a negative NPV (or a 70% chance of a positive NPV) since this may perhaps represent an unacceptable level of risk as far as the managers of Umunat plc are concerned. It can thus be argued that assigning probabilities to expected economic states or sales volumes has produced useful information that is able to help the managers of Umunat to make better investment decisions. The complexity with this approach is that probability estimates of project variables or future economic states are probable to carry a high degree of uncertainty and subjectivity.
Indicate by check mark ("9") or "X" which accounts are found on the income statement and which accounts are found on the balance sheet. Account Name In
Lockheed Martin's management wishes to find out whether they have excess debt capacity. Its current market value of equity is $40 b and its book value of debt is $
Students are to prepare and report as a financial advisor to an investor as to whether the public company selected is a suitable investment for the investor. In preparing the essay
Answer the following questions relating to Discounted Cash Flow (DCF) projections and valuations. (a) Michael Hudson asks a rhetorical question (tongue in cheek): "What's not
Question: Mosman Ltd produces a single product. The projected sales for the first month of the coming year and the beginning and ending inventory data are as follows:
I have an assignment in consolidation accounting and would like to know if you can assist me in doing the assignment for me. I am doing BA in Accounting . Please let me know. Re
The principle that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash and (3
Determine balance sheet: Income Statements Year Ended December 31, 20X8 Insure Co. Go-med Co. Sales $3,900,000
Virtual Learning Inc., an Ontario-based company on the cutting edge of technology, is analyzing the possibility of providing university-level courses for York University. This virt
What Accounting method (cash or accrual) would you recommend for the following businesses? a. A gift shop with average annual gross receipts of $900,000 b. an accounting partnershi
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