What is the new product irr for deciding

Assignment Help Microeconomics
Reference no: EM132162764

Question: New Tech has a new product that has incurred R&D expenses of $375,000. An additional $500,000 is needed if the product is to proceed. Initial sales will be $50,000 per month, and they will increase by $5000 per month. The market is moving fast, and the product will be closed out in 2 years. What is the new product's IRR for deciding whether to proceed?

Reference no: EM132162764

Questions Cloud

Define the three basic approaches to ethical behavior : Discuss in detail the ramifications the Sarbanes-Oxley Act has had on business in the United States.
What is the rate of return : Acme Bond Trading receives a 10% commission on all bond transactions. If an 8% coupon bond selling for $933 matures in 8 years and is bought from Acme.
What is the relationship between good x and good z : a. Based on the supply curve above, what is the relationship between good X and good Z?
Discuss trends in the external environment scanning process : Discuss five trends in the external environment scanning process that will affect most businesses.
What is the new product irr for deciding : New Tech has a new product that has incurred R&D expenses of $375,000. An additional $500,000 is needed if the product is to proceed. Initial sales will be.
How sensitive is the npv to changes in the quantity sold : Changes in NWC will thus first occur in Year 1 with the first year's sales. How sensitive is the NPV to changes in the quantity sold
What irr is earned in the given problem : Disneyworld's 4-day pass costs $140, and a 1-day pass is $50. A family visits Disneyworld every 3 years for 2 days each time.
Price elasticity of demand and total revenue : Discuss the relationship between price elasticity of demand and total revenue. Why is that you don't see a "sale" on Luis Vuitton Ladies Bag?
Discuss what you believe is the most strategic competency : Discuss what you believe is the most strategic competency, resource or capability exhibited by your Strategic Audit firm(Walmart).

Reviews

Write a Review

Microeconomics Questions & Answers

  What uses of resources the strategies would allow

Imagine your company has put you in charge of developing a sustainability plan, a common framework your organization will use to achieve its sustainability goals. Devise two strategies you would have your company adopt, and explain why you believe..

  What is the long-run total cost function

Suppose the production function for oranges is Q = k^1/3 L^1/3. What is the labor demand function when Q = 4 and r = 9 ? What is the capital demand function when Q = 4 and w = 4 ?

  What does the term intellectual property mean

What does the term "intellectual property" mean? Can you give an example of something that might be described as intellectual property? What new idea can you come up with that might be described as intellectual property?

  Concept of nodes and spreading activation

What is the network models approach and how does it relate to the concept of nodes and spreading activation?

  The market structure of monopolistic competition

Choose one company from the market structure of monopolistic competition and one company from oligopoly. State which characteristics fit and make these market structures fit to the description.

  The concept of social security as originally envisioned by

the concept of social security as originally envisioned by president roosevelt the viability of social security within

  Describe what is meant by contribution analysis

Can you think of a recent example where you had to evaluate the incremental costs. Explain what is meant by "contribution analysis". Carefully define the term and provide examples to illustrate it.

  Estimate each of the given proposals to address global

evaluate each of the following proposals to address global warming. consider for each the equity issues whether the

  Assumption of the linear breakeven model

Short-run cost function - Which of the is not an assumption of the linear breakeven model - the breakeven sales volume (in dollars) can be found by multiplying the breakeven sales volume

  What factors influence the demand for the given product

What factors influence the demand for this product? How have these changes in supply and demand affected the equilibrium price of this product?

  What if the new yorker pays cash for the machine

How would these transactions show up in the balance of payments accounts of New York and New Jersey? What if the New Yorker pays cash for the machine?

  What are the two or more political view on the budge deficit

How do fiscal policy decision made by the government impact the aggregate demand-aggregate supply model? What are the two or more political view on the budge.

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