1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Norma-Jean [14]
2 years ago
9

Development cost $ 1,250,000 Estimated development time 9 months Pilot testing $ 200,000 Ramp-up cost $ 400,000 Marketing and su

pport cost $ 150,000 per year Sales and production volume 60,000 per year Unit production cost $ 100 Unit price $ 205 Interest rate 8% Tuff Wheels also has provided the project plan shown below. As can be seen in the project plan, the company thinks that the product life will be three years until a new product must be created.
Required:
What is the net present value (discounted at 8%) of this project?
Business
1 answer:
siniylev [52]2 years ago
8 0

Answer:

Tuff Wheels

The net present value of the project is:

= $13,617,154

Explanation:

a) Data and Calculations:

Development cost $ 1,250,000

Estimated development time 9 months

Pilot testing $ 200,000

Ramp-up cost $ 400,000

Total Project cost in Year 0 = $1,850,000 ($ 1,250,000 + $200,000 + $400,000)

Marketing and support cost $ 150,000 per year

Sales and production volume 60,000 per year

Unit production cost $ 100

Unit price $ 205

Contribution per unit = $105 ($205 - $100)

Total contribution margin = $6,300,000 ($105 * 60,000)

Marketing and support cost  $ 150,000

Interest rate 8%                         148,000

Net income (cash flow)      $6,002,000

Discount rate = 8%

Annual net cash inflow = $6,002,000

Annuity factor = 2.577

Total cash inflow = $15,467,154 ($6,002,000 * 2.577)

Total project cost      1,850,000

Net present value  $13,617,154

You might be interested in
Smashed pumpkins co. Paid $200 in dividends and $624 in interest over the past year. The company increased retained earnings by
Maru [420]

Dividends that were paid last year = $200

Retained earnings = $522

Net Income = Retained earnings + Dividends paid = 200+522 =722

Tax rate was 38%.

Earnings before tax (EBT) = Net income/ (1-tax rate) =722/(1-0.38) = 1,164.52

Interest expense= 624

Earnings before interest and tax (EBIT) = EBT + interest expense = 1,164.52 + 624 = 1,788.52

Earnings before interest and tax (EBIT) = 1,788.52


3 0
3 years ago
a client undergoes personalility changes and has difficulty with voluntary activities. the client is diagnosed with a brain tumo
Shalnov [3]

Answer:

3. Frontal Lobe

Explanation:

Based on the information provided within the question it can be said that in this scenario the client is diagnosed with brain tumor which the nurse indicates as being located in the Frontal Lobe. The nurse knows this immediately due to the fact that the Frontal Lobe is the part of the brain that concerns personality, behavior, emotions, and intellectual function. Since the client has undergone personality changes then it can be deduced that the tumor is located in the Frontal Lobe.

7 0
3 years ago
the length and Length breadth and height of a room in a house are 8m 6m and 4m respectively the house on a decides to paint the
trasher [3.6K]

Answer:

Cost\ of\ 112m^2 = 4.48

Explanation:

Given

<u>Dimension</u>

Length= 8m

Breadth = 6m

Height = 4m

Cost per m^2 = 0.04

Required

Determine the total cost to paint 4 walls

First, we need to calculate the area of the 4 walls.

Area = 2*(Length * Height) + 2 *(Breadth * Height)

Substitute values for Length, Breadth and Height

Area = 2*(8m* 4m) + 2 *(6m* 4m)

Area = 2*(32m^2) + 2 *(24m^2)

Area = 64m^2 + 48m^2

Area = 112m^2

Cost per m^2 = 0.04.

Cost\ of\ 112m^2 = 112 * 0.04

Cost\ of\ 112m^2 = 4.48

8 0
3 years ago
in a high- work system, a firm's technology, organizational structure, people, and processes work together seamlessly. this resu
leva [86]

In a high-work system, a firm's technology, organizational structure, people, and processes work together seamlessly. This results in the firm having an advantage in the competitive environment performance.

The definition of technology is the software of scientific information for practical functions or packages. Era makes use of medical concepts and applies them to exchange the environment in which people stay. Technology can also use clinical concepts to advance industry or different human buildings.

Information technology is critical in our lives as it enables us to address ordinary dynamic matters. Technology offers numerous tools to enhance improvement and exchange statistics. Both these things are the goal of IT to make obligations simpler and to clear up many issues.

Technology is the way we practice medical understanding for sensible functions. It includes machines (like computer systems) but also strategies and approaches (just like the manner we produce computer chips). It'd look like all era is most effective electronic, however that is simply maximum cutting-edge technology.

Learn more about technology here brainly.com/question/7788080

#SPJ4

3 0
1 year ago
A customer sells 1 ABC Corporation put for 2 on February 22, 2019, with a strike price of 50 and an expiration date of March 16,
Deffense [45]

Answer: a. He has an acquisition cost of $4,800 and a date of acquisition of March 15, 2007.

Explanation:

A Put amount gives the holder the right to sell underlying assets. As the Put was exercised, the customer would have to buy the underlying stock and the price they will pay for it is the strike price of the Put less the cost of the Put.

Options contracts come in 100s so;

Acquisition cost = (50 - 2) * 100

= 48 * 100

= $4,800.

The date of acquisition is the day the put was exercised.

8 0
3 years ago
Other questions:
  • Which of the following is an authorization from the local government to carry on an enterprise?
    6·1 answer
  • The managerial accountant at Donuts Galore needs to compute the target operating income to determine how much would need to be s
    12·2 answers
  • Regarding a broker's commission, the California Business and Professions Code requires that in the sale of residential property
    15·1 answer
  • sarah Jones wants to deposit $2,000 per year into an account earning 4 percent for the next 3 years, so she can purchase a used
    9·1 answer
  • Write the short about the poison case against bhimsen thapa​
    14·1 answer
  • You own a portfolio that is 25 percent invested in Stock X, 40 percent in Stock Y, and 35 percent in Stock Z. The expected retur
    7·1 answer
  • John Deere is a manufacturer of agriculture equipment. Deere supplies replacement parts to dealerships across the globe. John De
    14·1 answer
  • JDS Shipyard's projected benefit obligation, accumulated benefit obligation, and plan assets were $75 million, $65 million, and
    6·1 answer
  • all of the following people would be considered insureds under the liability section of a homeowners policy except
    8·1 answer
  • Which inventory costing method results in the lowest net income during a period of rising inventory​ costs?.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!