Incremental cash flow in your capitol budgeting analysis

Assignment Help Financial Management
Reference no: EM13914829

Your company manufactures sports equipment. You are considering replacing a brand of golf clubs with a new line of golf clubs. which of the following is not considered to be an incremental cash flow in your capitol budgeting analysis?

a) A reduction in revenue of $300,000 from terminating the old product line.

b) Land that you own with a market value of $125,000 that might be used for the new product.

c) $200,000 spent last year on research and development.

d) $350,000 you will pay to Tiger Woods for promoting the new golf clubs

Reference no: EM13914829

Questions Cloud

About the invest in stock portfolio : You have $255,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 14 percent, and Stock L, with an expected return of 10.6 percent. Required: If your goal is to create a portfolio with an expected return of 12.25 ..
Determine the amount that should be recorded in new business : If purchased separately, the land would have cost $60,000, the building $135,000, and the equipment $105,000. Determine the amount that should be recorded in the new business's records for land, building, and equipment.
Identify null and alternative hypotheses : Claim 20% of adults smoke. A recent Gallup survey of 1016 randomly selected adults showed that 21% of the respondent smoke, Identify null and alternative hypotheses
Ethical issues in making the decision to retain : Read the article, "Are 787's Lithium-Ion Batteries Hazardous to Boeing's Health?" Assuming the technical problems with the batteries are factual, discuss the following:
Incremental cash flow in your capitol budgeting analysis : Your company manufactures sports equipment. You are considering replacing a brand of golf clubs with a new line of golf clubs. which of the following is not considered to be an incremental cash flow in your capitol budgeting analysis?
Determining sample-size is important step : Determining sample-size is important step when planning a statistical study. It is also quite a difficult task since many variables must be considered.
Financial statements for the fiscal year : Halifax Corp. has a December 31 fiscal year-end. The company will release its financial statements for the fiscal year 2015 on March 15th, 2016. A 10-year note payable to Nova Scotia Bank is becoming due on June 30th, 2016. On January 20th, 2016, the..
Evaluate a deposit/refund system for pesticide containers : According to the EPA, uncontrolled disposal of pesticide residues and containers contributes significantly to groundwater contamination and hence threatens drinking water supplies. Design and evaluate a deposit/refund system for pesticide ..
Suppliers for on-time deliveries and high-quality inputs : Total Corporation is considering implementing a JIT production system. The new system would reduce current average inventory levels of $2,000,000 by 75% but would require a greater dependency on the company’s core suppliers for on-time deliveries and..

Reviews

Write a Review

Financial Management Questions & Answers

  These events could be most readily explained by

FB, Inc. declared a dividend of $2 per share, which was an increase of 25% from the prior year, yet AFB, Inc. stock declined by 3% the day of the announcement. DAS, Inc. declared a dividend of $2 per share, which was the same as the prior year, and i..

  Find the yield to maturity of a bond

Find the yield to maturity of a bond which matures in 15 years, is currently selling at $900 and has an annual coupon payment of 4% paid, semi-annually.

  What capital gain-loss will brighton report

Brighton Corp. bought an oil rig exactly 6 years ago for $109,000,000. Brighton depreciates oil rigs straight line over 10 years assuming no salvage value. The rig was just sold to British Petroleum for $34,000,000. What Capital Gain/Loss will Bright..

  Annual cash flows-what is the future value of the account

Annual cash flows-If the interest rate on deposits is 5.5% and the payment day 1 is $85 instead of after one year, what is the future value of the account at the end of five years? If the hurdle rate is 5.5% what is the PV of these cash flows? If it ..

  Determining profit or loss from an investment

Determining Profit or Loss from an Investment. Three years ago, you purchased 150 shares of IBM stock for $88 a share. Today, you sold your IBM stock for $103 a share. For this problem, ignore commissions that would be charged to buy and sell your IB..

  Savings account at bank and made an initial deposit

You opened a savings account at a bank and made an initial deposit. The account pays 8% interest compounded annually. You made no additional deposits and in exactly one year you close the account and take out off of the money. The balance at the time..

  What is the dollar amount of its ending inventory

If a firm has purchases of $50,000, a starting inventory of $35,000 and the cost of goods sold is $45000, what is the dollar amount of its ending inventory?

  Compute the market value of the bonds

Gillian Stationery Corporation needs to raise $600000 to improve its manufacturing plant. It has decided to issue a $1000 par value bond with an annual coupon rate of 8.0 percent with interest paid semi annually and a 10-year maturity. Investors requ..

  What does the market believe will be the stocks price

What does the market believe will be the stock's price at the end of 3 years and what ls the expected dividend per share for each of the 11011 5 years?

  Compute relevant initial outlay-capital budgeting decision

AFB, Inc. is considering replacing an old machine with a new one. Two months ago their chief engineer completed a training seminar on the new machine's operation and efficiency. The $3,000 cost for this training session has already been paid. The old..

  Developing materials for traditional photographic methods

Kodak used to primarily produce and distribute photographic paper and developing materials for traditional (i.e., non digital) photographic methods. A sizable portion of their business was home photography. Since they were one of the few suppliers of..

  Stakeholders might be affected by terceks media release

Nancy Tercek, the financial vice president, and Margaret Lilly, the controller, of Romine Manufacturing Company are reviewing the financial ratios of the company for the years 2012 and 2013. What stakeholders might be affected by Tercek’s media relea..

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