Preview

K Membangun Prototipe. Perkiraan Terbaik Sekarang Adalah Bahwa Ada 80 Persen Kemungkinan Bahw

Satisfactory Essays
Open Document
Open Document
591 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
K Membangun Prototipe. Perkiraan Terbaik Sekarang Adalah Bahwa Ada 80 Persen Kemungkinan Bahw
NPV - A $500 feasibility study will be at t = 0.
Consider the following project data:
(1) A $500 feasibility study will be conducted at t = 0.
(2) If the study indicates potential, the firm will spend $1,000 at t = 1 to build a prototype. The best estimate now is that there is an 80 percent chance that the study will indicate potential, and a 20 percent chance that it will not.
(3) If reaction to the prototype is good, the firm will spend $10,000 to build a production plant at t = 2. The best estimate now is that there is a 60 percent chance that the reaction to the prototype will be good, and a 40 percent chance that it will be poor.
(4) If the plant is built, there is a 50 percent chance of a t = 3 cash inflow of $16,000 and a 50 percent chance of a $13,000 cash inflow.
If the appropriate cost of capital is 10 percent, what is the project's expected NPV?
Answer Summary
Consider the following project data:
(1) A $500 feasibility study will be conducted at t = 0.
(2) If the study indicates potential, the firm will spend $1,000 at t = 1 to build a prototype. The best estimate now is that there is an 80 percent chance that the study will indicate potential, and a 20 percent chance that it will not.
(3) If reaction to the prototype is good, the firm will spend $10,000 to build a production plant at t = 2. The best estimate now is that there is a 60 percent chance that the reaction to the prototype will be good, and a 40 percent chance that it will be poor.
(4) If the plant is built, there is a 50 percent chance of a t = 3 cash inflow of $16,000 and a 50 percent chance of a $13,000 cash inflow.

Ini pertanyaan PR:
NPV - Studi kelayakan $ 500 akan dilakukan pada t = 0.
Mempertimbangkan data proyek berikut:
(1) Studi kelayakan $ 500 akan dilakukan pada t = 0.
(2) Jika penelitian menunjukkan potensial, perusahaan akan menghabiskan $ 1000 pada t = 1 untuk membangun prototipe. Perkiraan terbaik sekarang adalah bahwa ada 80 persen kemungkinan bahwa

You May Also Find These Documents Helpful

  • Good Essays

    Nt1330 Unit 4

    • 4542 Words
    • 19 Pages

    The second project would be the development of a new product which could produce the following net profits after the end of the project:…

    • 4542 Words
    • 19 Pages
    Good Essays
  • Better Essays

    Caledonia Products recently acquired a new financial analyst assistant. Before “unleashing” the new assistant into a solo position Caledonia Products has set a huge task. The new assistant has to take under consideration a new investment, of creating and distributing a new product. The new project would last five years and cost a total of $1,000,000 over the course of the five years. The assistant will be both calculating the cash flows associated with the new investment as well as evaluate several mutually exclusive projects, (Titman, Keown, & Martin, 2011). The assistant must answer several key questions:…

    • 1189 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Fin Exam

    • 1062 Words
    • 5 Pages

    A project has initial costs of $3,000 and subsequent cash inflows in years 1 ? 4 of $1350, 275, 875, and 1525. The company's cost of capital is 10%. Calculate NPV for this project.…

    • 1062 Words
    • 5 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Considering the information for the Proposal concerning the building of the new factory, the incremental cash flows are needed for the NPV analysis. The incremental cash flows are sales of $3 million a year which equals an increase in gross margin by $150,000 given a 5% gross margin and initial on investment of $10 million which is the cost of building the new factory. The savage value at the end of the project life will be $14 million.…

    • 588 Words
    • 6 Pages
    Satisfactory Essays
  • Good Essays

    A company wants to build a new factory for increased capacity. Using the net present value (NPV) method of capital budgeting, determine the proposal’s appropriateness and economic viability with the following information:…

    • 854 Words
    • 4 Pages
    Good Essays
  • Better Essays

    The financial assistant received the important assignment by memorandum from the CEO. The memorandum stated that the company is considering the introduction of a new product (Keown, Martin, Perry, & Scott, 2005). Caradonia is currently at a 34% marginal tax bracket with a 15% required rate of return or cost of capital (Keown, Martin, Perry, & Scott, 2005). The new project is estimated to last five years and then be terminated because of being a fad project (Keown, Martin, Perry, & Scott, 2005). The financial assistant must analyze two mutually exclusive projects. Each project has an 11% rate of return and a life span of five years (Keown, Martin, Perry, & Scott, 2005). The following table (table one) shows the expected cash flows for each project.…

    • 1388 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    boeing guideline

    • 305 Words
    • 2 Pages

    of Return (IRR) from this project is around 15.66%. Given the projected cash flow information…

    • 305 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    2. (TCO G) - (Ignore income taxes in this problem.) Axillar Beauty Products Corporation is considering the production of a new conditioning shampoo that will require the purchase of new mixing machinery. The machinery will cost $375,000, is expected to have a useful life of 10 years, and is expected to have a salvage value of $50,000 at the end of 10 years. The machinery will also need a $35,000 overhaul at the end of Year 6. A $40,000 increase in working capital will be needed for this investment project. The working capital will be released at the end of the 10 years. The new shampoo is expected to generate net cash inflows of $85,000 per year for each of the 10 years. Axillar's discount rate is 16%.…

    • 504 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Real Option

    • 966 Words
    • 4 Pages

    If the plant is built, there is a 50 percent chance of a t = 3 cash inflow of $16,000 and a 50 percent chance of a $13,000 cash inflow.…

    • 966 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Finance Course Project

    • 1973 Words
    • 8 Pages

    You have now been tasked with providing a recommendation for the project based on the results…

    • 1973 Words
    • 8 Pages
    Good Essays
  • Good Essays

    Links: Ltd is considering investing in a project that will involve purchase of plant and machinery costing N150,000.The plant and machinery are expected to have a life span of 5 years and a residual value of N8,000. the project will generate cash profits as follows:…

    • 3657 Words
    • 15 Pages
    Good Essays
  • Satisfactory Essays

    Cara Pembentukan Malaysia

    • 943 Words
    • 4 Pages

    > Selain itu, mereka juga berpendapat Sabah dan Sarawak perlu diberi kemerdekaan dahulu sebelum menyertai Malaysia.…

    • 943 Words
    • 4 Pages
    Satisfactory Essays
  • Better Essays

    AKUNTANSI SUMBER DAYA MANUSIA Kelompok IV : Standing on the shoulder of giants and acknowledge OVERVIEW Tahun 1960an meningkatnya ketertarikan pada ide akuntansi untuk manusia sebagai sumber daya organisasi Ide “menampilkan akun manusia dalam neraca” karena manusia merupakan sumber daya yang berharga, dan laporan keuangan menjadi defisiensi jika tidak menampilkan aset manusia. Pertumbuhan tren: berkembangnya metode akuntansi SDM bertujuan…

    • 2807 Words
    • 28 Pages
    Better Essays
  • Powerful Essays

    Pengahapusan Piutang Blu

    • 496 Words
    • 2 Pages

    3. Peraturan Menteri Keuangan Nomor 230/PMK.05/2009 tanggal 28 Desember 2009 tentang Penghapusan Piutang Badan Layanan Umum…

    • 496 Words
    • 2 Pages
    Powerful Essays
  • Good Essays

    Economics Review

    • 3868 Words
    • 16 Pages

    5. The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales of your new product to $3 million. If it would cost $1 million to finish development and make the product, should you go ahead and do so? What is the most that you should pay to complete development?…

    • 3868 Words
    • 16 Pages
    Good Essays