What is the expected npv

Assignment Help Basic Computer Science
Reference no: EM131056723

R&D Planning. A firm is in the process of assessing the economic prospects for a new bottling machine it is develop- ing. Future research and development expenses could range from $4 to $9 million, with a most likely value around $7 million. The life of the product will be anywhere from 3 to 10 years. Yearly unit sales will range from 100 to 500, with a most likely value around 300. The machines will sell for between $20,000 and $25,000 each. The production cost of the machine is expected to be $13,000 but could be as low as $11,000 or as high as $15,000. The firms discount rate is 10 percent.

a. What is the expected NPV for this new machine over ten years?

b. What is the probability of a positive NPV?

(Powell)

Powell, Stephen G. Simulation Using Spreadsheets Custom eText for University of Alabama - Tuscaloosa. Wiley Custom Select, 7/14/15. VitalBook file.

Reference no: EM131056723

Questions Cloud

Determining the beta of the company : A company uses 2 things to finance the capital budget. Company estimates that the WACC is 15%. The capital structure is 75% debt and 25% internal equity. Before tax cost of debt is 15% and tax rate is 20%. Risk free rate is 6% and market risk prem..
Pair of parallel disk electrodes under a voltage : Oil breakdown voltage. An insulating oil was tested between a pair of parallel disk electrodes under a voltage that increased linearly with time. The oil breakdown voltage was measured 60 times each, with two sizes of electrodes.
Depreciation expense-double-declining-balance : Sanders Catering purchases a van for $32,000. The van has an estimated salvage value of $6,000 and is expected to be driven for four years. Garrett uses the double-declining-balance method of depreciation.
Annual ocf for the project : Required: If the tax rate is35 percent, what is the annual OCF for the project?
What is the expected npv : a. What is the expected NPV for this new machine over ten years? b. What is the probability of a positive NPV?
Current pistons and a separate actuarial estimate : Cylinder life. For certain engines, each piston failure causes its cylinder to fail. Also, there are cylinder failures due to other causes. The table below shows an actuarial estimate of the reliability function of current pistons and a separate a..
Explain the difference between outsourcing and offshoring : Explain the difference between outsourcing and offshoring. Review the RR Case Study and identify two processes that RR could outsource or offshore. Explain the benefits and the risks associated with those decisions.
Question regarding the disregarding appreciation : What is their equity (disregarding appreciation) after 5 years? After 10 years? After 20 years?
Federal budget and texas state budget : Using your favorite search engine, locate the federal budget and Texas State budget for the current fiscal year. Compare and contrast both budgets in an essay consisting of no less than 500 words, and include the following:

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Explain how itpm best practices

Explain how ITPM best practices can align the IT portfolio with business requirements in order to create the greatest possible value for the organization.

  Write an assignment on different characteristics of scale

Write an assignment on different characteristics of scale types

  Which act confirms the identity of a user or system

Which fallback authentication is used when Kerberos does not work?

  Display the total and average number of calories burned

Write a condition-controlled while loop that allows the user to enter the calories they burned. Stop looping when the user enters a negative number. Display the Total and Average number of calories burned.

  Each letter of a three-letter word stored in memory

Write an LC3 program that "increments" each letter of a three-letter word stored in memory following the program. 'a' becomes 'd', 'n' becomes 'q', 'z' becomes 'c', etc. Make sure you comment your code! This is the Julius Caesar Cipher. Assume that a..

  Formulate the tautology underlying the rule

For each of the arguments below, formalize them in propositional logic. If the argument is valid identify which inference rule was used, and formulate the tautology underlying the rule. If the argument is invalid, state whether the inverse or conve..

  Both the discussion and in the assignment tool

Post your response to the following questions in both the discussion and in the assignment tool. Name your assignment in the following manner: LastName_4A

  Determine the frictional force acting on a and check motion

The coefficient of static friction between the cord and the fixed peg at C is µ's = 0.3

  Apply programming design concepts through creation

The task is to animate a cat chasing a mouse as it tries to get close enough to catch it (within 1 foot). Of course, as the cat continues to chase the mouse, the mouse is also running away and moves to random positions, trying to lose the cat. You wa..

  Text-to-speech-speech-to-text and voice recognition.

Speech recognition systems introduce great capabilities including text-to-speech, speech-to-text, and voice recognition.

  Microsoft dynamics introduction

Topics: navigation, role center, productivity enhancement, decision support, workflow, industries supported, etc. Please write 1 FULL page report on what you have learned from this video (double space, font size 12) When watching videos, please ta..

  Determine the needs of the organization

Describe the steps you would take to determine the needs of the organization (the discovery of the network devices

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