Detailing the cost

Assignment Help Finance Basics
Reference no: EM1361863

The purchasing department has found an excellent global positioning system circuit card in Germany that can provide your firm with a competitive advantage in the marketplace. Delivery of the circuit card is 6 months from date of order. The German firm has offered your firm a 3% discount on the 2.5 million (euros) purchase if paid upfront with the order; otherwise, the full 2.5 million (euros) will be payable in 6 months before delivery, providing inflation in Germany does not exceed 2% for the year. If the inflation exceeds 2% for the year, the rate of inflation would be added to the 2.5 million (euros). You will want to find out how inflation has been running after the European Union trade agreement and introduction of the euro and if is likely to increase.

Your supervisor has asked for a recommendation on how Primetime Systems, Inc. should handle the payment and the probable cost of each scenario. You know that your firm's weighted average cost of capital is 8%. Create an Excel spreadsheet detailing the cost of each scenario and embed it into a Word document giving your recommendations.

 

Reference no: EM1361863

Questions Cloud

Non-egocentric mind : Explain the logic of the non-egocentric mind. What are attributes of this mind, and how does it usually think? Present ideas about how you can expand your ability to think rationally.
What was the car''s initial velocity : A charge of -3.95 nC and a charge of -5nC are separated by a distance of 30.0 cm. Find the position at which a third charge of +8.00 nC can be placed so that the net electrostatic force on it is zero. How many cm from the -3.95 nC charge and how m..
Follow-up actions for making decisions : What are the things you should consider in making this decision, and based on your choice, what would be your follow-up actions?
Roles in writing an exercise prescription : Discuss the following elements and their roles in writing an exercise prescription:
Detailing the cost : The buying department has found an excellent global positioning system circuit card in Germany that can provide your company with a competitive advantage in the marketplace.
How much work is done by a man in pushing the mower : A 0.2 object is swung in a vertical circular path on a string 0.1 m long. The acceleration of gravity is 9.8 m/s^2. If a constant speed of 4.07 m/s is maintained, what is hte tension in string when the object is at the top of the circle? Answer in..
Various components of fitness : During this stage of the course we have spent a considerable amount of time looking at the various components of fitness (strength, endurance, power, flexibility).
What is the most difficult part of creating the algorithm : Pseudocode algorithm you would write for a simple task. What do you think is the most difficult part of creating the algorithm? What can you do to make this process easier?
Calculate the expected value : Assume you won the lottery and were offered a choice of either $500,000 in cash or a gamble in which you would get $1 million if a head were flipped but zero if a tail came up.

Reviews

Write a Review

Finance Basics Questions & Answers

  Determining the cost of equity

What is the value of the firm according to MM with corporate taxes? What is the firm's cost of equity? The firm's gain from leverage according to the Miller model is $126,667. If the effective personal tax rate on stock income is 20 percent, what i..

  Determine the required sales volume

Senbet Ventures is planniing starting a new company to produce stereos. The sales price would be set at 1.5 times the variable cost for each unit; the VC/unit is estimated to be 2.50;

  Capm and valuation

CAPM and Valuation. You are considering acquiring a firm that you believe can generate expected cash flows of $10,000 a year forever. However, you recognize that those cash flows are uncertain.

  Describing company analysis

Develop a fundamental analysis of the company using the analytical tools such as the Dupont Framework. For my purposes I am comparing Sprint and Verizon.

  Hewlett packard-compaq merger

For the Hewlett Packard/Compaq merger, and in relevance to contingency plans which could have been anticipated for the strategy, As a result of your investigation and analysis

  Computation of pv and future annual payments

Computation of PV and Future Annual Payments and principal amount and Compute the original principal amount

  Computing equal periodic deposits

You want to have $30,000 in your savings account eight years from now-what amount should you deposit each year?

  A motivator of employee performance

Most companies spend half or more of their operating budgets on employee wages & benefits. With an investment as high as this, it is important that organization leverage the greatest possible return.

  Foreign competition limit the prices

Determine how does foreign competition limit the prices that domestic companies can charge and the wages and benefits that workers can demand?

  Making profit by selling programs

Byron is considering to finance his college education by selling programs at the football games. There is a fixed expenses of $400 for printing these programs, & the variable cost is $3.

  Dod acquisition system

What would necessitate the DoD to have a structured, regulated, and robust acquisition system?

  Find weighted average cost of capital using retained earning

What is the weighted average cost of capital using retained earnings and what is the weighted average cost of capital using new common stock?

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd