Spreadsheet model to calculate net present value of profit

Assignment Help Operation Management
Reference no: EM131787239

For a new product, sales volume in the first year is estimated to be 80,000 units and is projected to grow at a rate of 4% per year. The selling price is $12 and will increase by $0.50 each year. Per-unit variable costs are $3, and annual fixed costs are $400,000. Per-unit costs are expected to increase 5% per year. Fixed costs are expected to increase 8% per year. Develop a spreadsheet model to calculate the net present value of profit over a 3-year period, assuming a 4% discount rate.

Reference no: EM131787239

Questions Cloud

Explain why for the receiver station the part is long : "Receiver Station: An option to receive the fixed leg of a swap (i.e., long receiver is long duration).
Plain vanilla or generic interest-rate swap : a. What is the risk with using a plain vanilla or generic interest-rate swap?
Discuss what is net profit that the company will recognize : What is the net profit that the company will recognize in the current year related to these contracts
What is the semiannual fixed-rate payment : Assume that the swap in question a requires payments semiannually rather than quarterly. What is the semiannual fixed-rate payment?
Spreadsheet model to calculate net present value of profit : Develop a spreadsheet model to calculate the net present value of profit over a 3-year period, assuming a 4% discount rate.
What strengths do you have as the given kind of leader : What strengths do you have as this kind of leader? What are the weaknesses? Give examples from your experience to illustrate.
Estimate the difference between the centers : Compare the two histograms for the two time periods, and explain what they show. Also estimate the difference between the centers.
Find the natural frequencies : find the natural frequencies - find the amplitude ratio - equation of motion of a 2-DOF system
What must accountants do to ensure that such financial : What must accountants do to ensure that such financial statements serve its' purpose

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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