Your dad recently decidedto set up a coconut oilfactory given the globaldemand. In order toguarantee profitabilityand his ability to stay inbusiness. He has askedyou to help in thedecision-making. Given anestimated fixed cost ofsetting up of Gh¢2m andvariable cost of Gh¢55 perbottle of oil. Contributionmargin is 12.7%. Whatshould be the price (to thenearest whole) if he wantsto breakeven at 250,000bottles. #randomized O A. Gh¢63B. Gh¢62C. Gh¢65D. Insufficient information

in this we have to use break even cost volume analysis.

Your dad recently decided to set up a coconut oil factory given the global demand. In order to guarantee profitability and his ability to stay in business. He has asked you to help in the decision-making. Given an estimated fixed cost of setting up of Gh¢2m and

Your dad recently decided to set up a coconut oil factory given the global demand. In order to guarantee profitability and his ability to stay in business. He has asked you to help in the decision-making. Given an estimated fixed cost of setting up of Gh¢2m and

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Finance
can i have the hand written solution for this?
please show ALL calculation process and explanation. Thank you
2. You are thinking about starting a restaurant franchise in Irvine, California. You are considering two choices – either a P.F. Chang’s or a Dairy Queen. Unfortunately, you only have an opportunity to build one or the other. The details are the following: P.F. Chang’s: The franchise fee and cost of the building are $1,000,000. After careful calculation, you believe the restaurant will generate $150,000 a year in positive cash flow for the next 20 years at which point the franchise rights expire and the building is worthless (ie. There’s no extra money at the end). Discount rate is 10%. Dairy Queen: The franchise fee and cost of the building are $500,000. After careful calculation, you believe the restaurant will generate $80,000 a year in positive cash flow for the next 20 years at which point the franchise rights expire and the building is worthless (ie. There’s no extra money at the end). Discount rate is 10%. a) What are the two projects’ IRRs and which franchise would you…
You are the CEO of Megah Holding. Four years ago, your company purchased machine XYZ. Because of increasing maintenance costs for this equipment, a new piece of machinery is being considered for the assembly line. The cost characteristics of the defender and challenger are shown in TABLE Q3. Suppose RM 6000 Market Value (MV) is available now for the defender. Using a before tax MARR of 15%, as a CEO decide whether you will prefer to maintain the old machine or replace it with a new machine? Justify your answer. TABLE Q3 Defender Challenger Original cost Maintenance cost RM 500 RM 11 000 RM 150 / year RM 9000 Purchase price Maintenance | (year 1) (increase RM cost 100/year) Useful life (years) 5 MV at the end of Useful life (years) MV at the end of RM 3000 useful life useful life
Styles Johnson & Johnson Corporation has plan to diversify their business. One is to open a fast-food restaurant and the other one is an opening of boutique. Both are located in Kuala Lumpur and both projects are forecast to be opened in June 2022. Fast-food restaurant has been given the name as J&J Restaurant and the initial investment is RM150,000. While the boutique has been given name as Jie & Joe ane the cost involved is about RM100,000. The cost of capital is 12%. As a finance manager you are forecasting both projects on the annual cash flow based on few methods. The cash flow are as follows: J&J Restaurant Annual Cash Flows: 1st year RM40,000, 2nd year increase to RM55,000, 3rd year increase by RM10,000, the 4th year is RM70,000 and the 5th year is RM85,000 Jie & Joe Boutique Annual Cash Flows: 1st year RM30,000, 2nd year increase by RM15,000, 3rd year is RM45,000 and the 4th year is RM50,000 and the 5th year is RM70,000 You determine the above annual cash flows according to: 1)…
I need assistance on Identifying each of the following as either capital budgeting (investment) or financing decisions and an explanation on why? Intel decides to spend $1 billion to develop a new microprocessor. Volkswagen borrows 350 million euros from Deutsche Bank. Royal Dutch Shell constructs a pipeline to bring natural gas onshore from a production platform in Australia. Avon spends 200 million euros to launch a new range of cosmetics in European markets. Pfizer issues new shares to buy a small biotech company.
Compute the necessary calculations and advise Apple Limited if it is worth investing in neither, in one or both of these two opportunities
Solve it correctly please. I will rate accordingly with 4votes.
Please help me
Suppose that you are the manager of a studio cafe, and you are planning to invest on a new camera and a coffee maker designed to increase the productivity of your employees and output (services) produced. Your analyst provided you the following information: A. Complete the table below. Should the new camera and coffee maker be purchased? Explain your answer based on the incremental analysis.
Question: . What is the estimated Internal Rate of Return (IRR) of the project? Should the project be accepted based on the IRR criterion? Why? You have determined in your mind that you would like to have a business of your own, although your father runs a family restaurant in your local city. You have therefore, decided to have a medium size snack and cocktails bar which will accommodate the cruise ship passengers who visit your city. You plan to keep the business for five years after which you will sell it off to your brother John for $2,000,000 and go off to do your Master’s Degree in the UK. Though you will be occupying the establishment from your grandmother for free, you have decided that you need to make some improvements to the property which will cost you $1,500,000. Additionally, you will spend $275,000 in bar stools, tables and decorations. If this space had been leased out, it would have fetched a lease rental of $75,000 per year. You will depreciate the assets over 7…

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