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2 years ago

Explain about New product pricing strategy

1 answer:

7 0

The first new product pricing strategies is called price-skimming. It is also referred to as market-skimming pricing. Price-skimming (or market-skimming) calls for setting a high price for a new product to skim maximum revenues layer by layer from those segments willing to pay the high price.

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The following is the cash flow from a manufacturing plant in the next five years:

Svetllana [295]

Answer:

The sum of the present values of the stream of cash flows is $1,011,772.58

Explanation:

We need to compute the present value of the cash flows separately for each amount

The first cash flow is occurring at the end of the first year

We use the formula PV = FV/(1+i)^n

Where PV = Present Value, FV = Future value, i = Interest rate, which is the rate at which the cash flows are to be discounted and n = the year in which the cash flow occurs

Plugging the values in the formula, we get the present value for the first year

PV = 250,000/(1+0.065)^1 = 250,000/1.065 = 93,896.71= $93,896.71

The present values for the successive years are provided as under

PV = 20,000/(1+0.065)^2 = 20,000/(1.065)2 = 17,633.1857= $17,633.1857

PV = 180,000/(1+0.065)^3 =180,000/(1.065)3 = 149,012.8365= $149,013.8365

PV = 450,000/(1+0.065)^4 =450,000/(1.065)4 = 349,795.3909= $349,795.3909

PV = 550,000/(1+0.065)^5 =550,000/(1.065)5 = 401,434.4601= $401,434.4601

Adding up the present values for each of the years, we obtain the present value of the cash flow stream

93,896.71+17,633.1857+149,013.8365+349,795.3909+401,434.4601 = $1,011,773,.58 approximately (only the final answer is rounded off to two decimal points)

The solution in word format is also attached here

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6 0

3 years ago

Which of the following is an example of a specific purpose? A. I want my employees to understand and follow the new dress code p

Alla [95]

Answer:

D. a and c

Explanation:

I hope it helps.

8 0

2 years ago

A customer’s order was never filled because an order entry clerk transposed the customer identification number while entering th

Stells [14]

Answer:

The correct answer is C. Validity check.

Explanation:

Identifying possible errors in real time, as the process progresses through the warehouse, allows you to make the necessary adjustments at the moment and reduces the time and resources dedicated to correcting faults. Intermec 2D and RFID portable barcode technologies improve the accuracy of storage processes and preparation of orders to such an extent that many companies can do without the step of verifying orders in the loading process.

6 0

3 years ago

Read 2 more answers

Last year Carson Industries issued a 10-year, 12% semiannual coupon bond at its par value of $1,000. Currently, the bond can be

Nataly [62]

Answer:

YTM = 8.93%

YTC = 8.47%

Explanation:

$P = \frac{C}{2} \times\frac{1-(1+YTC/2)^{-2t} }{YTC/2} + \frac{CP}{(1+YTC/2)^{2t}}$

The first part is the present value of the coupon payment until the bond is called.

The second is the present value of the called amount

P = market price value = 1,200

C = annual coupon payment = 1,000 x 12% 120

C/2 = 60

CP = called value = 1,060

t = time = 6 years

$P = 60 \times\frac{1-(1+YTC/2)^{-2\times 6} }{YTC/2} + \frac{1,060}{(1+YTC/2)^{2\times 6}}$

Using Financial calculator we get the YTC

8.467835879%

$P = 60 \times\frac{1-(1+YTM/2)^{-2\times 10} }{YTM/2} + \frac{1,000}{(1+YTM/2)^{2\times 10}}$

The first part is the present value of the coupon payment until manurity

The second is the present value of the redeem value at maturity

P = market price value = 1,200

C = coupon payment = 1,000 x 12%/2 = 60

C/2 = 60

F = face value = 1,060

t = time = 10 years

Using Financial calculator we get the YTM

8.9337714%

4 0

3 years ago

Universal Travel Inc borrowed $500,000 on November 1, 2018 and signed a twelve month note bearing interest at 6% Principal and i

horrorfan [7]

Answer:

Interest will be $5000

So option (A) will be correct option

Explanation:

We have given principal amount P = $500000

Rate of interest = 6 %

Time is November 1 to December 31

So time = 2 months = 0.1666 year

Interest is given by

Interest $=\frac{principal\ amount\times rate\times time}{100}=\frac{500000\times 6\times 0.1666}{100}=$5000$

So option (a) will be correct option

4 0

3 years ago