1. Longform Printing of Medford, Massachusetts: As mentioned through initial discussions with Abcor’s prospective customers, some smaller manufacturing firms do not understand how the lower cost of materials will compensate over time the higher cost of the plate making equipment. However, even by offering a bid price of $14,000, which is $2,000 above the list price, the buyer’s initial cash outflow is still less than the machine’s list price of $12,000. As shown in Table 1.1, the buyer’s initial cash outflow would be $10,030. At this bid price, the buyer will be able to net to a positive cumulative cash flow of $413 by the fourth year (Table 1.1).
Cash flow Growth: 8%. Dividend Yield: 2.90%. Dividend Growth: 9% (Alden, 2011). Coca-Cola has additionally grown offering 14 brands to the company making a profit of $1 billion or more in annual sales, the company sold $25.5 billion unit case and had revenue of $35.119 billion in 2010 (Alden, 2011). Coca-Cola has grown its’ revenue rapidly over 5 years, this brought about an important highlight for the company in between 5 years, so the company earned about 8.5% in annual revenue growth.
This project will require an additional cost of $575,000 to bring the product to market. The forecasted ROI on the Stargazer project is $300,000 first year; $550,000 the second year; and $750,000 the third year. This product has an expected life of 7 years. Releasing this product will result in the company being seen as a leader in the industry. While there is not a critical path listed for the Stargazer project, I anticipate being able to complete the project within 12 months to ensure that the company is able to generate revenue on the schedule
It will show where it comes from, and where it goes. This indicates the company’s profitability, as shown in the net income, and their ability to meet obligated debts. It is possible for a company to have success in sales and net earnings and still fail to generate enough cash flow to meet obligations. The Home Depot is reporting a well maintained cash balance as reported in the balance sheet, and its operations continue to keep the influx of cash coming. The Home Depot cash flow shows significant net earnings and the cash flow statement does not indicate a drastic drop from previous years.
Question: (TCOs 6 and 7) XYZ plating is going ahead on an expansion project. They will be able to earn $300 per hour and run 3,000 hours per year. What is the net present value for the next five years with an interest rate of 6%? • BSOP 209 Week 6 Quiz 1. Question: (TCO 14) Briefly discuss the decision methods used when there is complete uncertainty as to which state in a decision environment may occur.
In 2008, the souring economy hit Whole Foods rather hard. Sales increases at Whole Foods stores open at least one year rose only 0.8 percent in 2008 versus 8.2 percent in the previous year. In August of 2008, Whole Foods announced that planned new store openings for 2009 would be reduced. Whole Foods had to back out of signed leases or revise the lease terms of 70 new stores that had been scheduled to open in 2009 and 2010. Whole Foods recently arranges to sell $425 million of preferred stock to private equity investors, which equated to an ownership interest of 17 percent in the event the private equity investors exercised rights to convert their preferred stock into common
After a six year run the world saw an Industrial Average increase in value fivefold, prices peaked at 381.17 on September 3, 1929. The Crash then fell sharply for a month, losing 17% of its value on the initial leg down. Prices then recovered more than half of the losses over the next week, only to turn back down immediately
Question: : (TCO D) Tender Foot Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with its attorney and determined that it is possible that they may lose the case. The attorneys estimated that there is a 40% chance of losing. If this is the case, their attorney estimated that the amount of any payment would be $500,000. What is the required journal entry as a result of this litigation?
Evaluation of Revere Street property, rewards and risks The property had been gutted by a fire in 2003 with only a shell left. An architect had purchased the shell for $250,000, and the renovation plan had beyond his budget so he decided to sell it. Alexander was told by a contractor that it would cost $165,000 to complete the architect’s plan. With all the information Alexander had, he estimated an income and expense statement to see how profitable this investment was. He figured out that the net income he would gain from the rent is $86,640 per year and the total expenses would be $25,130 per year, which leads to a cash inflow of $61,510 per
The Great Depression lasted in America for at least ten years, but it took twenty-seven years to get the economy back above depression levels. To this day, the reasons that lead to the Great Depression are still being debated; although there are a few reasons that historians and ecoomics have agreed on. Such as, the stock market crash that occurred on October 29th of 1929. This happened when a few investors began selling their stocks, because they thought the bull market was going to end soon. The bull market was when prices were rising due to automobiles; steel was selling at a record high but was going down very fast.