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- ****Only answer this question if you are sure about the correct answer**** ***Return on investment Question*** 27. If you want to remodel your house: a. The house was bought with a cost of $175,000. b. The house remodel will cost $38,000. c. After the remodel, the expected house value could increase by 4% 1. What is the ROI % (….........) 2. Yes or no, based on ROI is this a good investment (..............)32 Success Electronics LLC is planning to introduce a low cost smart phone with attractive features. The market research information suggests that the product should sell 2000 units at RO 30 per unit. The company seeks to make a mark-up of 20% product cost. It is estimated that the lifetime costs of the product will be as follows: Design and development costs RO 5000 Manufacturing costs RO 22 per unit End of life costs RO 7000 What is target cost per unit to achieve the desired profit? a. RO 22 per unit b. RO 20 per unit c. RO 25 per unit d. RO 24 per unitAI not solve this question plse expert solution
- ****Only answer this question if you are sure about the correct answer **** ***Return on investment Question*** 27. If you want to remodel your house: a. The house was bought with a cost of $175,000. b. The house remodel will cost $38,000. с. After the remodel, the expected house value could increase by 4% 1. What is the ROI % (...............) 2. Yes or no, based on ROI is this a good investment (...........)A3 8avi You are considering a new product launch. The project will cost $680,000, have a four-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 100 units per year, price per unit will be $19,000, variable cost per unit will be $14,000, and fixed costs will be $150,000 per year. The required return on the project is 15%, and the relevant tax rate is 35%. Ignore the half-year rule for accounting for depreciation. a. Calculate the following six numbers for this project. Round your answers to two decimal places. (vi) Average Accounting Return (AAR in %) Hint: Net Income = {[(Price – variable cost)*Quantity Sold] – Fixed Costs – Depreciation} * (1 – Tax rate)CH5 #10 A company is considering two alternative marketing strategies for a new product. Introducing the product will require an outlay of $15,000. With a low price, the product will generate cash proceeds of $10,000 per year and will have a life of two years. With a high price, the product will generate cash proceeds of $18,000 but will have a life of only one year. The hurdle rate for this project is 0.05. Which marketing strategy should be accepted?
- Q27VijayA3 8av You are considering a new product launch. The project will cost $680,000, have a four-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 100 units per year, price per unit will be $19,000, variable cost per unit will be $14,000, and fixed costs will be $150,000 per year. The required return on the project is 15%, and the relevant tax rate is 35%. Ignore the half-year rule for accounting for depreciation. a. Calculate the following six numbers for this project. Round your answers to two decimal places. (v) Internal Rate of Return (IRR in %)
- Question 6 "Fulda Springs Water Ltd." has identified two different bottling lines that would both suit to bottle their new table water called "Fulda's Best". Machine B allows bottling the water in a premium bottle whereas machine A can only handle standard bottles. The company's cost of capital are 8% p.a.. They expect to sell 150.000 bottles every year. The water can be sold at a higher price if it is bottled in the premium bottle. The controller has set up the following table with data that is needed to make an investment decision. Machine A Machine B sales price for 1 bottle of "Fulda's Best" 0,80 € 0,90 € expected useful life of the machine (years) What is the best choice according to the cost comparison calculation, • profit comparison calculation, • Profitability comparison? When will the machine pay for itself? 5 4 purchasing price for the machine 100.000,00 € 180.000,00 € residual value of the machine € 20.000,00 € annual fixed cost 20.000,00 € 5.000,00 € variable cost (per…Question A .Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this lineQUESTION 2 Determine which of the following two alternatives is the most efficient and which is the most profitable using the Internal Rate of Return (IRR) method: Alter. Purchase Cost $ Annual Savings Life (yrs) (Reduced Pollution fees $lyr) A 1,000,000 $355,000 8 В 3,000,000 $575,000 16 The MARR is 10% per year. Attach File Browse Local Files