,Sarah L. G January 6, 2013 Written Assignment #1 1. A) $1,000 with 5% interest after 10 years gives you $1,628. Therefore, you would gain $628 in interest. B) If the interest is withdrawn each year, a total of $500 would be earned because the $1,000 investment would earn $50 of simple interest each year. C) The answers are different because if the interest is left untouched, it makes the principal amount higher each year, giving more money after 10 years.
This project will need $3.4 million less than the P04 project and the only component in the investment, which will be more, compared to P04 is the building cost (378 K$). Cannibalization of other store’s sales As the nearest target store closest to the project is 80 miles away, no cannibalization of sales is expected. And this store will generate a sale of $30.5 million in 5 years, which will be almost 2.7 million dollars above expected sales from P04. This store is assumed to take it’s a maximum market share from Walmart in 2008. Store Sensitivities Even if this store has 18.1% lower sales than the forecasted level by R&P, it can achieve the accepted NPV of prototype, besides, construction cost can increase to near $10 million and still the project can achieve the expected NPV of the P04.
The shortest loan period for the $30,000 car that would be under our $500 limit is the 60 month loan at a rate of $431.13 per month. 2b. Whether you can afford it or not, how much is the monthly payment for a $30,000 car for a 36 month loan? Answer: The 36 month loan is at a rate of $697.87 per month. 3a.
From this we know that a) Firm A has a higher profit margin than firm B b) Firm B has a higher profit margin than firm A c) Firm A and B have the same profit margin d) Firm A has a higher equity multiplier than firm B 16. If you deposit $15,000 per year for 9 years (each deposit is made at the beginning of each year) in an account that pays an annual interest rate of 8%, what will your account be worth at the end of 9 years? 17. You plan to accumulate $450,000 over a period of 12 years by making equal annual deposits in an account that pays an annual interest rate of 9% (assume all payments will occur at the beginning of each year). What amount must you deposit each year to reach your
They charge $15 a month for local service + tax with voice mail, call waiting, and caller Id. They also offer unlimited long distance for $20 a month. They charge no late fees for late payments; however, with long distance the bill would total about $50 a month; Both VCI and Qwest offer necessary service to the public, however, their service rates
Consumers in the Midwest pay about $70 a month for high-speed Internet. Add television service, and the cost is about $120 a month. In Provo, the costs are the same, but there is a one-time fee of $30. "Something we have noticed is that competition is good in these local markets," said Kevin Lo, general manager of Google Fiber. Google would not say how much it costs to roll out Google Fiber.
Improving Working Capital There are several ways a company can improve its working capital. A major way to improve Competition Bikes’ working capital is to increase its finished goods inventory. For example, the company is currently showing zero finished goods on the balance sheet for all three years. By finishing product, the current assets would be increased, and therefore the working capital would be increased. Another way to improve the company’s working capital is by reducing costly expenses.
This upward trend for Competition Bikes continues from year 6 through year 8, giving the company ample cash on hand to meet their current liabilities. For every dollar they spend, they have over $5 on hand. This indicates that Competition Bikes is able to quickly turnover their short term debt and has less financial strain. However, a high amount of working capital may mean that management has not found a more beneficial way to utilize their cash on hand and is not making the most return on investment possible. Examining year 7 and year 8, higher accounts receivables is seen $717,600 for year 7 from $271,503 in year 6, and $609,960.
3) Read the scenario and respond to the questions. Support your answers with calculations, as needed. Show your work. Submit your completed assignment as a Microsoft® Excel®, a Microsoft® Word, or a PDF document. Discussion Questions DQ 1 How does a corporation compute earnings and profits (E&P)?
Independent labels that order more than 100,000 CDs a year pay approximately $.65 per CD. Labels that buy less than 10,000 CDs a year pay approximately $1.20 per CD. These costs include the printing of 4-page package inserts and tray cards. Royalty Costs Record labels pay two royalties: The first is a record royalty to the performing artist(s); the second is a mechanical royalty to composers and publishers. Some companies pay record royalties on a percentage (8% to 16%) of the suggested list retail price (SLRP) less a packaging cost, generally 15% to 25% of the SLRP.