Evaluating project that will increase annual cash sales

Assignment Help Marketing Management
Reference no: EM132049519

1. A firm is evaluating a project that will increase annual cash sales by $145,000 and increase annual cash costs by $94,000. The project will initially require $110,000 in fixed assets that will be depreciated straight-line to a zero book value over the four-year life of the project. The applicable tax rate is 32 percent and the required rate of return is 10%. Compute the Net Present Value of the Project.

$27,826

$43,480

$63,920

$29,920

2. A company's most recent annual Free Cash Flow is $180,000,000. Free cash flow is expected to grow by 15% per year for the next 10 years and then grow by 3% per year thereafter. Investors required rate of return is 11%. What is the current value of the stock?

$11,300,755,080

$2,250,000,000

$5,404,011,121

$1,636,363,636

Reference no: EM132049519

Questions Cloud

Price for a sellout performance to generate a total revenue : How many tickets should be sold at each price for a sellout performance to generate a total revenue of $144500.
Average annualized compounded return formulas : Why is the number "1" added to each rate in the average annualized compounded return formulas?
Find the maximum torque in shaft b : The shaft B carries a flywheel of mass 30 kg. If the radius of gyration of the flywheel is 100 mm, find the maximum torque in shaft B
Number of mosquitoes in anchorage : The number of mosquitoes in Anchorage, Alaska (in millions of mosquitoes) as a function of rainfall (in centimeters) is modeled by:
Evaluating project that will increase annual cash sales : A firm is evaluating a project that will increase annual cash sales by $145,000 and increase annual cash costs by $94,000.
Explain your position regarding the electoral college : Explain your position regarding the Electoral College and whether you are for or against the Electoral College as it is currently.
Cash flow stream : If the relevant discount rate for the entire period is 10%. What is the present value (pv) of this cash flow stream?
Create an argument supporting your choice : Of the eight principles of design, called "Golden Rules" (strive for consistency, cater to universal usability, offer informative feedback, design dialogues.
How many acres of corn did he? plant : The cost of planting and harvesting wheat is $135 per acre. If Farmer? Brown's total cost was $264,050, how many acres of corn did he? plant?

Reviews

Write a Review

 

Marketing Management Questions & Answers

  An existing organization

Use the new product or service that will be launched by either an existing organization or one you will create. The company is Samsung and the product is the Galaxy S6/Note smartphone.

  What are the opportunities for marketers

What are the opportunities for marketers associated with using this type of data? How reliable/useful are these types of analyses?

  What is your favorite consumer electronics retailer

Describe how the special characteristics of retailing offer unique opportunities and problems for local gift shops.

  What you post on your own social media account

In other words, describe how the product, promotion, price and place (distribution) strategies can be impacted by consumers' perceived needs (as defined by Maslow).

  Explain major components of strategic funds - smc millennium

Explain Major Components of Strategic Funds - SMC Millennium and The final phase of the marketing plan for the SMC Millennium will conclude with the marketing mix components of place and promotion and discuss public relations along with advertising

  Explian targeting segments and brand positioning statements

Targeting Segments and Brand Positioning Statements, Break down the segmentation variables used for Baby Boomers versus Gen Nester

  Important step in the creative process

Selecting the focus of an advertising visual is an important step in the creative process. Which of the following is LEAST likely to be the focus for an ad visual

  Complete the final phase of new product launch

Complete the final phase of your New Product Launch Marketing plan. Using the sample Marketing Plan in Marketing and Management

  Statements about products and services

Which of the following statements about products and services is true

  Reports of walmart bribing mexican officials

In recent years reports of Walmart bribing Mexican officials points to an often encountered problem; working against American regulation. Research the Walmart issue using material from the Economist, the Wall Street Journal or other sources (be su..

  What is the break even point

What is the Break Even point (in units and dollars) for a company wishing to sell an MP3 Player for $55 with average variable costs of $35 per unit and estimated total fixed costs of $180,000? This question requires two (2) answers.

  Prepare and organize thoughts for organization communication

Organization Communication- Prepare and organize thoughts for your presentation. Remember that your objective is clear for this presentation. You are required to summarize the article, identify and explain its purpose, and define key terms

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