Homework Help is Here – Start Your Trial Now!
Business
Accounting
ccessories. You need our marketing team

ccessories. You need our marketing team

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
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.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS