FI 515 Course Project a) The net cost of the spectrometer would include the original cost of the equipment, the modification costs and the increase in working capital due to having the equipment. Therefore, the net cost would be the $70,000 base costs, plus the $15,000 in modification costs and the $4,000 in capital, which equals $89,000. b) To find the operating cash flows for the three years, we have to find the cost savings after taxes and add the tax of depreciation. To find the cost savings, we have to take the $25,000 that is expected to be saved and reduce it based on a tax of 40%, or $25,000(1-.4), which equals $15,000. The tax on depreciation requires several steps to calculate.
One of the key decisions they made in order to make their company a success was the strategy they used to market their products. They consistently used a specific routine in order to get the highest amount of sales for their product and this strategy is known as programmed decision making. Program decision making is making the same decisions consistently in order to achieve the same outcome as previous experiences. In this case, they applied it to the marketing aspects of their company. The first marketing strategy the company used was selling their earth buddy product in roots and that turned out to be a hit, but they wanted more.
How many years will it take for $197,000 to grow to be $554,000 if it is invested in an account with a quoted annual interest rate of 8% with monthly compounding of interest? 8. At what quoted annual interest rate must $134,000 be invested so that it will grow to be $459,000 in 15 years if interest is compounded weekly? 9. An annuity pays $24,000 per year for 11 years (first payment one year from today).
The company could sell a new issue of 25-year bonds at an annual interest rate of 11.67% in today's market. A call premium of 14% would be required to retire the old bonds, and flotation costs on the new issue would amount to $3 million. NYW's marginal tax rate is 40%. The new bonds would be issued when the old bonds are called. What will the after-tax annual interest savings for NYW be if the refunding takes place?
has doubled revenue and has grown diluted earnings per share at a compound rate of 15%. The company returned over $15 billion to shareholders through dividend payments and share repurchases. NIKE, Inc., forecasted to deliver $30 billion of revenue by the end of the 2015 fiscal year. Estimated to be at the top end of the $28 billion to $30 billion range to be shared for incentives (Investors, Nike 2014). In addition, the future value of revenue is $36 billion in revenue by the end of 2017 fiscal year.
With a new product launch Nike will have to focus on creating a first-class consumer experience along with creative product innovation, brand leadership, and maintain superior retail existence. Nike will have to target additional geographic expansion and farther marketing saturation in all regions. The idea is to capitalize on the strengths of the Nike brand and the weaknesses of other sport drink market leaders. Target Market It seems as if our product target the same market as Gatorade and Powerade. Zmuda (2010) addressed certain issues that are more based on image than anything, whereas now the focus has shifted to educating consumers about any changes to
It would also increase the awareness of the company beyond the three locations which could exponentially expand the demand for the products and services of KFF, leading to online sales and more brick and mortar locations. But would this diminish the quality that the small company offers? There is an appeal to the locally supported stores. KFF wants to maintain that familiarity with any expansion and going public could strip any authenticity from the
All that information would be overwhelming for the average consumer. In order to determine what works for whom without having to try them all, Prince should offer online evaluations for people interested. Also, Prince should work on expanding their market on a global scale; again, creating a large online presence would be beneficial in reaching tennis players in other countries. Overall, Prince does an excellent job at specialization and getting information out to dedicated tennis players. But in order to promote overall play, Prince needs to focus on personalities and behavior rather than science and professional athletes.
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If the sales outlook for the coming three years was only 20,000,000 and B.E. continued producing at the rate of 30,000,000 units, a total of 10,000,000 units would be dumped into ending inventory at the end of each year once again reducing costs of goods sold and falsely increasing income. By the end of year 2013, B.E. Company would have 35,000,000 units sitting in ending inventory taking up space and costing money to store. Once again if the president’s bonus is based off of net income, this situation is the most favorable for a high paying bonus and encourages stockpiling inventory to inflate net income.