Q1. Below is the projected financial information provided by Altaf Hussain Manufacturing LLC. The company wants tointroduce two new products into the market, Zandu and Eundu. The company provides the following forecasted information ofsales and costs.Sales in unitsProduct/YearYear 1Year 2Year 3Year 4Zandu60,000110,000100,00030,000Eundu75,000137,000125,00037,500ProductZanduEunduDirect material costs1411Selling price3123Selling price inflation (per year).3%Direct material cost inflation (per year)3%Advertisement cost (First Year)500,000Advertisement cost (2nd and 3rd Year)200,000Investment1,000,000Machinery1,000,000Fixed costs1,000,000Таx25%Residual value1.2millionRequired:Calculate NPV and IRR of this proposal project using MS Excel.Hint:Calculate expected revenue2. Expected costs3. Expected cashflows1.to calculate NPV and IRRMTEES

Capital budgeting is the process of evaluating and selecting long-term investments that are in…

Answered: Calculate NPV and IRR of this proposal…

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Calculate NPV and IRR of this proposal project using MS Excel.

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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> Question 3: Sohar Company's financial information is given in the table below. Sales (OMR) Fixed Costs 90000 120000 Year Variable Costs 405000 2019 2020 225000 450000 240000 Calculate: c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000. 面

Jules company as we know produces two (2) products, GK320 and GK340. The following sales forecast for both products was decided on for the financial year January 1, 2020 to December 31, 2020: Details Q1 Q2 Q3 Q4 Total GK320 6,500 5,200 5,500 4,000 21,200 GK340 4,800 4,600 4,500 3,700 17,600 Notes: (a) The company planned to sell both GK320 and GK340 for $50 each. (b) The sales forecast for the first quarter of 2021 is 5,900 units of GK320 and 4,000 units of GK340. (c) The closing stock level for both products at the end of each quarter is to be held at a level equal to twenty percent (20%) of the budgeted sales for the next quarter. (d) At the start of 2020 there were in stock 1,200 units of GK320 and 950 units of GK320. (e) To make one unit of GK320 four (4) units of raw material A are required, while six (6) units of raw material B are required to make one unit of GK340. The cost of raw material A is $20 per unit, while the…
Question 3: Mirbat Company's financial information is given in the table below. Year Sales (OMR) Fixed Costs Variable Costs 2020 445000 105000 245000 2021 500000 150000 280000 You are required to calculate the following values for each year. The years are independent of each other. a) P/V ratio, b) В.Е.Р. c) Sales required to earn a profit of OMR 45000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 300000.
Jules company as we know produces two (2) products, GK320 and GK340. The following sales forecast for both products was decided on for the financial year January 1, 2020 to December 31, 2020: Details Q1 Q2 Q3 Q4 Total GK320 6,500 5,200 5,500 4,000 21,200 GK340 4,800 4,600 4,500 3,700 17,600 Notes: (a) The company planned to sell both GK320 and GK340 for $50 each. (b) The sales forecast for the first quarter of 2021 is 5,900 units of GK320 and 4,000 units of GK340. (c) The closing stock level for both products at the end of each quarter is to be held at a level equal to twenty percent (20%) of the budgeted sales for the next quarter. (d) At the start of 2020 there were in stock 1,200 units of GK320 and 950 units of GK320. (e) To make one unit of GK320 four (4) units of raw material A are required, while six (6) units of raw material B are required to make one unit of GK340. The cost of raw material A is $20 per unit, while the…
Jules company as we know produces two (2) products, GK320 and GK340. The following sales forecast for both products was decided on for the financial year January 1, 2020 to December 31, 2020: Details Q1 Q2 Q3 Q4 Total GK320 6,500 5,200 5,500 4,000 21,200 GK340 4,800 4,600 4,500 3,700 17,600 Notes: (a) The company planned to sell both GK320 and GK340 for $50 each. (b) The sales forecast for the first quarter of 2021 is 5,900 units of GK320 and 4,000 units of GK340. (c) The closing stock level for both products at the end of each quarter is to be held at a level equal to twenty percent (20%) of the budgeted sales for the next quarter. (d) At the start of 2020 there were in stock 1,200 units of GK320 and 950 units of GK320. (e) To make one unit of GK320 four (4) units of raw material A are required, while six (6) units of raw material B are required to make one unit of GK340. The cost of raw material A is $20 per unit, while the…
Question 3: Sohar Company's financial information is given in the table below. Sales (OMR) 405000 Variable Costs 225000 240000 Year Fixed Costs 2019 90000 2020 450000 120000 Calculate: a) PV ratio, b) B.E.P. c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000. Page 2 ot Sate

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