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A company sells a product in four markets. The manager of decided to focus only on two markets instead on four markets. The Quantity
A company sells a product in four markets. The manager of decided to focus only on two markets instead on four markets. The Quantity Produced should be 7500 per market in the first year and it is expected to grow by 6% every year. The Cost Per Unit is $90 and expected to decrease by 5% every year. The Price Per Unit is $180 and expected to decrease by 4% per year. The mangers knows that the Quantity Sold and its Growth Rate is different in every market. So, he decided to develop a Planning Model and calculate the NPV for every market to find out which markets are going to be more profitable "best two markets". Qusetion1: Develop an excel model that calculate the profits over 5 years for the First Market. Knowing that the Total Quantity Sold for year-1 should be forecasted and calculated from the below table (the price is given for each month, and the sale is depending on the period and price). Any $5 dollar change in price will change 45 units sold. Month n Price Qty Sold January 1 $183 400 February 2 $200 275 March 3 $180 422 April 4 $177 450 May 5 $196 289 June 6 $186 450 July 7 $136 ? August 8 $133 ? September 9 $136 ? December 12 October 10 $180 November 11 $153 $160 ? ? ? Qusetion2: Develop an excel model that calculate the profits over 5 years for the Second Market. Knowing that the Quantity Sold for year 1 expected to increase by 10% and it is shown as cubic function of the price: Price Quantity Sold $125 8,000 $175 6,500 $225 5,000 $250 4,000 $275 3,000
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