Caledonia Products FIN/370 Caledonia Products 1. Why should Caledonia focus on project free cash flows as opposed to the accounting profits earned by the project when analyzing whether to undertake the project? The projected free cash flow for the first year of the venture was 35% of the total sales. This number increased by 5% the following year to 41% of total sales. For the next two years the cash flow stayed consistent at 35% of total sales.
In her Forrester Research report released Monday, Epps argues that when Amazon releases its tablet on the market, it has the potential to become the top competitor to Apple's iPad. The reason? It likely will be marketed at a significantly lower price. "If Amazon launches at a price point significantly lower than competing tablets--some sources suggest that it may be able to launch a 9-inch LCD touchscreen tablet for as low as $299--and has enough supply to meet demand, Forrester estimates that Amazon could sell as many as 3 million to 5 million tablets in Q4 2011 alone," Epps says--meaning Amazon's offering would leapfrog over competeting devices that have been on the market much
Once the new machinery is paid in full and Molly’s fixed costs return to $1,700 per month, her new monthly profit after 3 years will be $1,955. The answer was derived by using the following equation: 4,300 × (1.1 – $0.25) –1700 =
Department Product 1 Product 2 Product 3 Hours Available per week A 2 3.5 3 1200 B 3 2.5 2 1150 C 4 3 2 1400 (29 marks) Answer: Suppose we produce x units of Product 1, y units of Product 2, and z units of Product 3. Then, we expect that 2x + 3.5y + 3z = 1200, 3x + 2.5y + 2z = 1150, and 4x + 3y + 2z = 1400. We then need to solve this system. 3 marks i. Convert the given system to the matrix form: [pic][pic] = [pic] 2 marks ii.
SciTronics’ profit as a percentage of sales in 2008 was 5.7 %. 2. This represented an increase from 3.4 % in 2005. 3. SciTronics had a total of $ 102,000 (75,000 + 27,000) of capital at year-end 2008 and earned before interest but after taxes (EBIAT) $ 16,120 (avg.
2) The sales budget calculates how much the company will spend to produce the required number of units. The president should do further consideration in terms of capital and labor costs. Does company have an adequate capital to produce the required number of units? And if the answer is no, they should look for other alternatives such as borrowing and others. 3) The sales budget is to estimate the profitability.
2 4. (a) Factorise x2 + x – 6. 2 (b) Multiply out the brackets and collect like terms. (3x + 2)( x2 + 5x – 1) 3 [ X100/201] Page four Marks 5. The diagram below shows the graph of y = –x .
Solve using the multiplication principle first. Then use the elimination method. 2x+y=13 4x+2y=23 8. Solve by rearranging the equations first. Then use the multiplication principle and then use the elimination method: 3x=8y+11 x+6y-8=0 9.
QUESTIONS 1. Table 1 contains the complete cash flow analysis based on GP Manufacturing’s basic information. Explain the inputs into 1) the net initial investment outlay at year 0, 2) the depreciation tax savings in each year of the project’s economic life, and 3) the project’s incremental cash flows? 1. Net initial investment outlay is $302,040.
This means that this problem can be solved cross multiplying the extremes and means of the problem. y – 1/x +3 = -3/4 This is the problem that we were given to solve for y. First we multiply both sides by x+3 so we will have y-1(x+3) =-3/4(x+3) Then we simplify so we are left with y-1= -3/4x+3 Then we add 1 to both sides which gives us y-1(+1) = -3/4x+ 3(+1) Now we simplify again which us leaves