our highly successful software company is considering adding a new software title to your list. If you add the new product, it will use the full capacity of your disk duplicating machines that you had planned on using for your flagship product, “Battlin’ Bobby.” You had previously planned on using the unused capacity to start selling “BB” on the West Coast in two years. Eventually, you would have had to purchase additional duplicating machines 10 years from today, but since your new product will use up the extra capacity, this will require moving this purchase up to 2 years from today. If the new machines will cost $101,000 and can be expensed under Section 179, your marginal tax rate is 21 percent, and your cost of capital is 10 percent, what is the opportunity cost associated with using the unused capacity for the new product? Do not round intermediate calculations. Round your answer to 2 decimal places

I know this is a lot of information but this is what I would need to solve the problem.  Any help would be appreciated! Your company, VR Co., has been approached to bid on a contract to sell 20,000 voice recognition (VR) computer keyboards a year for four years. Due to technological improvements, beyond that time they will be outdated and no sales will be possible. The equipment necessary for the production will cost $4 million and will be depreciated on a straight-line basis to a zero salvage value. Production will require an investment in net working capital of $80,000 initially and to be returned at the end of the project, and the equipment can be sold for $200,000 at the end of production. Fixed costs are $700,000 per year, and variable costs are $48 per unit. In addition to the contract, you feel your company can sell 4,000, 12,000, 14,000, and 7,000 additional units to companies in other countries over the next four years, respectively, at a price of $145. This price is fixed.…

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I need the answer as soon as possible

You are evaluating a new project for Globex Corporation as the company is planning to launch a new and very efficient mobile device named Meta-5050. The new product is expected to run for 5 years. To produce this new product, Globex needs to purchase new equipment that will cost $750,000. The company needs to spend another $10,000 for shipping and installation. You estimate the sales price of Meta-5050 to be $650 per unit and sales volume to be 800 units in year 1; 1,400 units in years 2-4; and 500 units in year 5. The cost of the contents, packaging and shipping are expected to be $225 per unit and the annual fixed costs for this project are $150,000 per year. The equipment will be depreciated straight-line to zero over the 5-year project life. The actual market value (salvage value) of these assets at the end of year 5 is expected to be $35,000. If this project is taken up, inventory will increase by $72,000, accounts receivable will increase by $36,850, and accounts payable will…

A New App Development Team from the Global MBA Program at Universidad Rey Juan Carlos of Spain is working on an apparel shopping tool that can scan your body using your cell phone and find the best fitting clothes for you, which are then modeled by your own dynamic image right there on the screen. Being high-tech, the term is limited to one year, as innovations will be necessary to keep it from being copied or rendered obsolete. EBITDA for the end of year one is expected to be $50,000,000, while developing costs and investments amount to $ 10,000,000. The IRR applicable to IT projects is 57%, as indicated by S&P's sector ROI today. Which of the following is the correct NPV of their project if conceived for one year only? Limit to 2 decimals O $31,847,133.75 O None of the above is correct O $10,284,798.57 O $21,847,133.75

Perot Corporation is developing a new CPU chip based on a new type of technology. Its new chip, the Patay2 chip, will take two years to develop. However, because other chip manufacturers will be able to copy the technology, it will have a market life of two years after it is introduced. Perot expects to be able to price the chip higher in the first year, and it anticipates a significant production cost reduction after the first year as well. The relevant information for developing and selling the Patay2 is given as follows: Development cost Pilot testing PATAY2 CHIP PRODUCT ESTIMATES $20,000,000 $ 5,000,000 $ 3,300,000 Debug Ramp-up cost Advance marketing $ 3,000,000 $ 5,600,000 Marketing and support cost Unit production cost year 1 $ 1,000,000 per year $ 655.00 Unit production cost year 2 Unit price year 1 $ 545.00 $ 820.00 Unit price year 2 $ 650.00 Sales and production volume year 1 250,000 Sales and production volume year 2 Interest rate 150,000 10 % PATAY2 CHIP PROJECT TIMING…

Perot Corporation is developing a new CPU chip based on a new type of technology. Its new chip, the Patay2 chip, will take two years to develop. However, because other chip manufacturers will be able to copy the technology, it will have a market life of two years after it is introduced. Perot expects to be able to price the chip higher in the first year, and it anticipates a significant production cost reduction after the first year as well. The relevant information for developing and selling the Patay2 is given as follows: PATAY2 CHIP PRODUCT ESTIMATES Development cost $ 20,000,000 Pilot testing $ 5,000,000 Debug $ 2,800,000 Ramp-up cost $ 3,000,000 Advance marketing $ 4,600,000 Marketing and support cost $ 1,000,000 per year Unit production cost year 1 $ 655.00 Unit production cost year 2 $ 545.00 Unit price year 1 $ 820.00 Unit price year 2 $ 650.00 Sales and production volume year 1 250,000 Sales and production volume year 2 150,000 Interest rate 10 % Assume all cash flows occur…

Perot Corporation is developing a new CPU chip based on a new type of technology. Its new chip, the Patay2 chip, will take two years to develop. However, because other chip manufacturers will be able to copy the technology, it will have a market life of two years after it is introduced. Perot expects to be able to price the chip higher in the i rst year, and it anticipates a signii cant production cost reduction after the i rst year as well. The relevant information for developing and selling the Patay2 is given below.                                                              Patay2 Chip Product EstimatesDevelopment Cost                                                                                 $20,000,000Pilot Testing                                                                                              $5,000,000Debug                                                                                                           $3,000,000Ramp-up Cost…

Austins cell phone manufacturer wants to upgrade their product mix to encompass an exciting new feature on their cell phone. This would require a new high-tech machine. You are excited about his new project and are recommending the purchase to your board of directors. Here is the information you have compiled in order to complete this recommendation: According to the information, the project will last 10 years and require an initial investment of $800,000, depreciated with straight-line over the life of the project until the final value is zero. The firms tax rate is 30% and the required rate of return is 12%. You believe that the variable cost and sales volume may be as much as 10% higher or lower than the initial estimate. Your boss understands the risks but asks you to explain the alternatives in a brief memo to the board, Write a memo to the Board of Directors objectively weighing out the pros and cons of this project and make your recommendation(s).