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FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Your society specialized in cameras wants to launch a new range of lenses and accessories. You need to invest 500,500.00£ in research and development. Your marketing team will need 900 000£ and you have to buy a new property dedicated to that activity for 1 500 000€. The fixed charges of the property are estimated at 2 000 000€. You also need to invest in machines with high tech that will at least cost you 2 000 000£. You must hire a new technician and a project manager that will respectively have a wage of 2000£ and 3500£. They foresee the turnover and the variable cost as follow. N+1 N+2 N+3 N+4 N+5 Turnover 5,000,000.00 £ 9,000,000.00 £ 9,000,000.00 £ 17,000,000.00 £ 25,000,000.00 £ Variable 4,500,000.00 £ 3,000,000.00 £ 4,000,000.00 £ 5,000,000.00 £ 4,000,000.00 £ costs The cost of capital is equal to 9%. Calculate the payback Clue : you pay 33% taxes on your gross profit. The salaries are paid after that the taxes have been deducted.
Transcribed Image Text:Your society specialized in cameras wants to launch a new range of lenses and accessories. You need to invest 500,500.00£ in research and development. Your marketing team will need 900 000£ and you have to buy a new property dedicated to that activity for 1 500 000€. The fixed charges of the property are estimated at 2 000 000€. You also need to invest in machines with high tech that will at least cost you 2 000 000£. You must hire a new technician and a project manager that will respectively have a wage of 2000£ and 3500£. They foresee the turnover and the variable cost as follow. N+1 N+2 N+3 N+4 N+5 Turnover 5,000,000.00 £ 9,000,000.00 £ 9,000,000.00 £ 17,000,000.00 £ 25,000,000.00 £ Variable 4,500,000.00 £ 3,000,000.00 £ 4,000,000.00 £ 5,000,000.00 £ 4,000,000.00 £ costs The cost of capital is equal to 9%. Calculate the payback Clue : you pay 33% taxes on your gross profit. The salaries are paid after that the taxes have been deducted.
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