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- Why are common sized financial statements useful? How do they differ from traditional financial statements in the way that they are calculated?1. Rapir Rheosystems makes high-performance rotational viscometers capable of steady shear and yield stress testing in a rugged, compact footprint. How much could the company afford to spend now on new equipment in lieu of spending Php1.5M one year from now and Php3M three years from now, if the company uses an interest rate of 15% per year? A Php371.17k Php686.26k Php5.71M D Php2.84MOre
- 1. DPCL is a small-sized firm manufacturing hand tools. Its manufacturing plant is situated in Sohar. The company’s sales in the year ending December 2014 were OMR 1000 million on an asset base of OMR 650 million. The net profit of the company is OMR76 million. The management of the company wants to improve profitability further. The required rate of return of the company is 10%. The company is currently considering two investment proposals. One is to expand its production capacity. The estimated cost of the new equipment is OMR 250 million and has a life of 10 years. Forecasts of cash inflows would be OMR45 million per annum for the first 3 years, OMR 68 million from 4 to 8 years and OMR 30 million for the last 2 years. The plant can be sold for 55 million at the end of its economic life. The second proposal is to replace one of the old machines in Sohar to reduce the cost of operations. The new machine will cost OMR 50 million. The life of the machine is 10 years without any…A Mobile handset manufacture company has a motive of 25% profit. It starts manufacturing mobile handsets with fixed cost of Rs. 100,00,000/-. The variable cost for one handset is Rs. 33,00/-. The initial target was to sale 10000 mobile handsets annually. (A) What will be the selling price of one handset for achieving 25% profit. (B) Due to the Govt. policy, the demand of the mobile handsets are increased. Now, the company wants to sale 6000 mobile handsets more to the prior one. What will be the selling price now keeping the profit same? Assume the missing data.Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years and your cash flows from the contract would be $4.75 million per year. Your upfront setup costs to be ready to produce the part would be $7.91 million. Your discount rate for this contract is 7.8%. a. What is the IRR? b. The NPV is $4.38 million, which is positive, so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule?
- FULL QUESTION: Kinky Copies may buy a high-volume copier. The machine costs $100,000 and this cost can be fully depreciated immediately. Kinky anticipates that the machine actually can be sold in 5 years for $30,000. The machine will save $20,000 a year in labor costs but will require an increase in working capital, mainly paper supplies, of $10,000. The firm’s marginal tax rate is 21%, and the discount rate is 8%. (Assume the net working capital will be recovered at the end of Year 5.) What is the NPV of this project? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)possible annual sales may not exceed $50 lakhs and if there is competition it may fall considerably. of a new 48. A company has a project to install a new machine exclusively for the manufacture product which is expected to have good demand and reasonably high margin. Maximum e company has obtained quotations and short listed two offers for the new machine. Details in respect of the two models are given below : Machine Models M, $ 50 lakhs 5 lakhs 15 lakhs $ 50 lakhs Maximum possible sales per year Fixed Costs per year Estimated profit for maximum sales 8 lakhs 17 lakhs You are required to calculate : (i) Break even sales of each machine; (ii) Sales at which both models will give the same profit;9. A company that sells high-purity laboratory chemicals is considering investing in new equipment that will reduce cardboard costs by better matching the size of the products to be shipped to the size of the shipping container. If the new equipment will cost Php1M to purchase and install, how much must the company save each year for 3 years in order to justify the investment, if the interest rate is 10% per year? A Php66465.26 B Php88465.26 Php302114.80 Php402114.80
- You are considering whether or not to purchase another new air conditioner refrigerant recovery machine that costs RM13600.00 per piece. He knows that his total earnings for the past three years (sales for air conditioning service) have averaged RM33600.00 per year for 5 working days a week and have remained steady. You are sure that you will be able to sell another 200 air conditioning service per year for RM80.00 labor a piece as a result of having this new capability. You decided: i. Calculate and explain what would your shop ROI be over three years by taking this opportunity based on the information. ii. Calculate the ROI percentage (%) for the new machine's sales.B) Pakar & Son Sdn Bhd is looking to invest in a new project, with a project life of 4 years. The project involves a new manufacturing equipment that makes inline skate wheels. The marketing department estimates a total sale of 6,000 units each year at a price of RM300 per unit. Variable cost is about 40% from the selling price. Fixed cost is estimated at RM450,000 per year. The new equipment will cost RM1,500,000. The machine will be depreciated to zero over its 6-year economic life using the straight-line method. At the end of year 4, the equipment can be sold at RM650,000. The project also requires an investment of RM525,000 in net working capital at the start and it will be recovered in full at the end of the project's life. The corporate tax rate is 35 percent. The required rate of return for the project is 25%. i) What is the initial cost of this project? ii) Determine the annual cash flow of this project from year 1 to year 4.DLR Rheosystems makes high performance rotational viscometers capable of steady shear and yield stress testing in a rugged, compact footprint. How much could the company afford to spend now on new equipment in lieu of spending Php 200 000 one year from now and Php 300 000 three years from now, if the company uses an interest rate of 15 % per year? a.) Php 236 715.33 b.) Php 371 176.91 c.) Php 288 621.15 d.) Php 345 440.06
