INSTANT UPVOTE!!!

Head of Evtel Kitchen Appliances Milos wants to work with a start-up specializing in smart home technologies to expand EvTel's business. He asks Tolga, a new graduate hire from the R&D department, to research start-up companies. After his research, Tolga selected BEAD Technologies to present his superiors. Help him answer the questions below so that he can understand if they should invest in BEAD Technologies. Assume all payments are made at the end of the period. After an initial investment of 2795851; they will start operating in year 1 and sell the store at the end of year 6. Use the values given in Table A-1 to Part 1 complete Table A-2, and answer Part 1 according to it. What is the cash flow in the first year of the business? b What is the amount of money that EvTel made over their expectation in terms of today? What is the internal rate of return that shows Extel made a profit equal to their expectations? Points a 1 1 1 C Part 2 Evaluate different scenarios. The questions are independent of each other. 1 a To increase the quality of their products, Milos wanted employees to work overtime, so he gave a raise to employees. As a result, weekly expenses increased by 75%. What should be the percentage increase in revenue so that company still has the same NPV you found in part 17 (You can use tables B-1 and B-2 for this question.)(For goal seek, you must write the NPV by rounding up to the next integer. Use ROUNDUP() function with num_digits=0.) 1 b Ecem, the marketing manager of Milos, decided to make a social media campaign which started at the beginning of year 4 and will continue for 3 years. As the impact of influencers on social media is increasing day by day, annual revenue is expected to increase by 9% each year. What is the new NPV? (You can use tables C-1 and C-2 for this question.) 1.5 a 1.5 b Since Al technologies are getting more advanced, smart home products are expected to attract more customers. So, at the beginning of year 3, Milos Part 3 believes that they can grow by 29 % once and stay the same after year 3. (Note that both revenues and expenses will increase.) (This part is independent of other parts, but the initial investment is still 2795851 TL.) Milos thinks the store was achieving great success, and he decided to sell the store at the end of year 8 instead of year 6. What is the new selling price of the company to achieve 45% IRR? (You can use tables D-1 and D-2 for this question.)(This question is independent.) After the brand got popular, they decided to open stores abroad to expand to the international market. An investor, Ece, wants a partnership with Milos in the NYC store. Ece is willing to cover 15% of the initial investment but demands 25% of the yearly income as b well as she will get 20% of the selling price. Report the new NPV. (The answer can be positive or negative.) (You can use tables E-1 and E-2 for this question.)(This question is independent.) Tolga came up with a new idea for the R&D Team, which changed their annual expenses starting from and including year 3. If the new Net Present Value is 340,000TL; report the percentage change in the Annual Expenses. (Report a positive value.) (This question is independent.) Eyll opens a savings account in FIBABANKA with a monthly interest rate of 2%, solve the questions below accordingly. Assume that the savings rate and Part 4 lending rate are equal. Each question is independent. Eyll wants to buy a computer and she starts to deposit 450 TL each month to her account. After how many months can she buy the computer she wants that will cost 15,000 TL in the future? (Do not round the number.) Instructions Answers + 1.5 1 a Part 4 1 a Eyll opens a savings account in FIBABANKA with a monthly interest rate of 2 %, solve the questions below accordingly. Assume that the savings rate and lending rate are equal. Each question is independent. Eyll wants to buy a computer and she starts to deposit 450 TL each month to her account. After how many months can she buy the computer she wants that will cost 15,000 TL in the future? (Do not round the number.) She starts saving 120 TL into her account each month. She plans to save for one and a half years and use the saved money to buy a new smartphone. If the smartphone costs 7800TL at the end of eighteen months how much more money does she need to pay on top of her savings to buy the smartphone? 1 b 1 In the begining Eyll deposits 12,000 TL into her account and plans to deposit some amount to this account every month, so that she could buy her first car which will cost 155,000 TL at the end of 3 years. How much money does she need to deposit each month to buy her car after 3 years? (Return a positive number.) Part 5 Ali has a savings account with an annual interest rate of 25%. Ali wants to invest his savings and he is considering three different options. Assume that the savings rate and lending rate are equal. Each question is independent. Areal estate agent offers Ali a property and Ali thinks he can sell this property for 2417530 TL after 10 years. What is the maximum price that Ali can buy this property rather than leaving his money it in the bank, so that he still earns at least as much as he would from the savings account? 1.5 a 1.5 b Selim offers Ali to be his partner in Selim's restaurant. For 65488 TL Ali can own half of the restaurant. The restaurant will grow 7% per year. After how many years can Ali sell his shares and earn the same amount of money he could earn from the bank account in 2 years? (Do not round the number.) 1.5 Ali considers joining a private pension system. To join, Ali needs to pay 22,000 TL initially and 7200TL every year. What should be the yearly rate of the private pension system, so that Ali can double the money which he would have made from the bank account only by depositing 7200TL every year in 10 years? 17 Table A-1 Table A-2 Revenue Year Cost Cash Flow 0 Initial Investment Cost of Capital Weekly Revenue Weekly Expenses 2795851 25% 14,850 3,900 1 2 3 4 Selling Price 6,000,000 There are 52 weeks in a year. 5 6 NPV IRR Instructions Answers + B C D E F G . J L Table B-2 Revenue Year Cost Cash Flow Table B-1 Initial Investment 27958511 Cost of Capital 25% Weekly Revenue 14,850 Old Weekly Expenses 3.900 New Weekly Expenses Percantege Increase in Revenue Selling Price 6,000,000 There are 52 weeks in a year 0 1 1 2 3 4 5 6 6 NPV IRR Table C-1 Table C-2 Revenue Year Cost Cash Flow 0 Initial Investment Cost of Capital Weekly Revenue Weekly Expenses 2795851 25% 14,850 3.900 1 2 3 Selling Price 6,000,000 There are 52 weeks in a year. 4 5 6 NPV IRR Table D-1 Table D-2 Revenue Year Cost Cash Flow 0 Initial Investment Cost of Capital Weekly Revenue Weekly Expenses Selling Price 2795851 25% 14,850 3,9001 6,000,000 1 2 3 4 5 New Yearly Revenue Instructions Answers Table D-1 Table D-2 Revenue Cost Cash Flow Year 0 Initial Investment Cost of Capital Weekly Revenue Weekly Expenses Selling Price 2795851 25% 14,850 3,900 6,000,000 1 2 3 4 5 New Yearly Revenue New Yearly Expenses There are 52 weeks in a year. 6 7 8 NPV IRR Table E-1 Table E-2 Revenue Cost Cash Flow Initial Investment Cost of Capital Weekly Revenue Weekly Expenses Selling Price 2795851 25% 14,850 3,900 6,000,000 Year 0 1 2 3 4 5 New Yearly Revenue New Yearly Expenses There are 52 weeks in a year. 6 NPV IRR Head of Evtel Kitchen Appliances Milos wants to work with a start-up specializing in smart home technologies to expand EvTel's business. He asks Tolga, a new graduate hire from the R&D department, to research start-up companies. After his research, Tolga selected BEAD Technologies to present his superiors. Help him answer the questions below so that he can understand if they should invest in BEAD Technologies. Assume all payments are made at the end of the period. After an initial investment of 2795851; they will start operating in year 1 and sell the store at the end of year 6. Use the values given in Table A-1 to Part 1 complete Table A-2, and answer Part 1 according to it. What is the cash flow in the first year of the business? b What is the amount of money that EvTel made over their expectation in terms of today? What is the internal rate of return that shows Extel made a profit equal to their expectations? Points a 1 1 1 C Part 2 Evaluate different scenarios. The questions are independent of each other. 1 a To increase the quality of their products, Milos wanted employees to work overtime, so he gave a raise to employees. As a result, weekly expenses increased by 75%. What should be the percentage increase in revenue so that company still has the same NPV you found in part 17 (You can use tables B-1 and B-2 for this question.)(For goal seek, you must write the NPV by rounding up to the next integer. Use ROUNDUP() function with num_digits=0.) 1 b Ecem, the marketing manager of Milos, decided to make a social media campaign which started at the beginning of year 4 and will continue for 3 years. As the impact of influencers on social media is increasing day by day, annual revenue is expected to increase by 9% each year. What is the new NPV? (You can use tables C-1 and C-2 for this question.) 1.5 a 1.5 b Since Al technologies are getting more advanced, smart home products are expected to attract more customers. So, at the beginning of year 3, Milos Part 3 believes that they can grow by 29 % once and stay the same after year 3. (Note that both revenues and expenses will increase.) (This part is independent of other parts, but the initial investment is still 2795851 TL.) Milos thinks the store was achieving great success, and he decided to sell the store at the end of year 8 instead of year 6. What is the new selling price of the company to achieve 45% IRR? (You can use tables D-1 and D-2 for this question.)(This question is independent.) After the brand got popular, they decided to open stores abroad to expand to the international market. An investor, Ece, wants a partnership with Milos in the NYC store. Ece is willing to cover 15% of the initial investment but demands 25% of the yearly income as b well as she will get 20% of the selling price. Report the new NPV. (The answer can be positive or negative.) (You can use tables E-1 and E-2 for this question.)(This question is independent.) Tolga came up with a new idea for the R&D Team, which changed their annual expenses starting from and including year 3. If the new Net Present Value is 340,000TL; report the percentage change in the Annual Expenses. (Report a positive value.) (This question is independent.) Eyll opens a savings account in FIBABANKA with a monthly interest rate of 2%, solve the questions below accordingly. Assume that the savings rate and Part 4 lending rate are equal. Each question is independent. Eyll wants to buy a computer and she starts to deposit 450 TL each month to her account. After how many months can she buy the computer she wants that will cost 15,000 TL in the future? (Do not round the number.) Instructions Answers + 1.5 1 a Part 4 1 a Eyll opens a savings account in FIBABANKA with a monthly interest rate of 2 %, solve the questions below accordingly. Assume that the savings rate and lending rate are equal. Each question is independent. Eyll wants to buy a computer and she starts to deposit 450 TL each month to her account. After how many months can she buy the computer she wants that will cost 15,000 TL in the future? (Do not round the number.) She starts saving 120 TL into her account each month. She plans to save for one and a half years and use the saved money to buy a new smartphone. If the smartphone costs 7800TL at the end of eighteen months how much more money does she need to pay on top of her savings to buy the smartphone? 1 b 1 In the begining Eyll deposits 12,000 TL into her account and plans to deposit some amount to this account every month, so that she could buy her first car which will cost 155,000 TL at the end of 3 years. How much money does she need to deposit each month to buy her car after 3 years? (Return a positive number.) Part 5 Ali has a savings account with an annual interest rate of 25%. Ali wants to invest his savings and he is considering three different options. Assume that the savings rate and lending rate are equal. Each question is independent. Areal estate agent offers Ali a property and Ali thinks he can sell this property for 2417530 TL after 10 years. What is the maximum price that Ali can buy this property rather than leaving his money it in the bank, so that he still earns at least as much as he would from the savings account? 1.5 a 1.5 b Selim offers Ali to be his partner in Selim's restaurant. For 65488 TL Ali can own half of the restaurant. The restaurant will grow 7% per year. After how many years can Ali sell his shares and earn the same amount of money he could earn from the bank account in 2 years? (Do not round the number.) 1.5 Ali considers joining a private pension system. To join, Ali needs to pay 22,000 TL initially and 7200TL every year. What should be the yearly rate of the private pension system, so that Ali can double the money which he would have made from the bank account only by depositing 7200TL every year in 10 years? 17 Table A-1 Table A-2 Revenue Year Cost Cash Flow 0 Initial Investment Cost of Capital Weekly Revenue Weekly Expenses 2795851 25% 14,850 3,900 1 2 3 4 Selling Price 6,000,000 There are 52 weeks in a year. 5 6 NPV IRR Instructions Answers + B C D E F G . J L Table B-2 Revenue Year Cost Cash Flow Table B-1 Initial Investment 27958511 Cost of Capital 25% Weekly Revenue 14,850 Old Weekly Expenses 3.900 New Weekly Expenses Percantege Increase in Revenue Selling Price 6,000,000 There are 52 weeks in a year 0 1 1 2 3 4 5 6 6 NPV IRR Table C-1 Table C-2 Revenue Year Cost Cash Flow 0 Initial Investment Cost of Capital Weekly Revenue Weekly Expenses 2795851 25% 14,850 3.900 1 2 3 Selling Price 6,000,000 There are 52 weeks in a year. 4 5 6 NPV IRR Table D-1 Table D-2 Revenue Year Cost Cash Flow 0 Initial Investment Cost of Capital Weekly Revenue Weekly Expenses Selling Price 2795851 25% 14,850 3,9001 6,000,000 1 2 3 4 5 New Yearly Revenue Instructions Answers Table D-1 Table D-2 Revenue Cost Cash Flow Year 0 Initial Investment Cost of Capital Weekly Revenue Weekly Expenses Selling Price 2795851 25% 14,850 3,900 6,000,000 1 2 3 4 5 New Yearly Revenue New Yearly Expenses There are 52 weeks in a year. 6 7 8 NPV IRR Table E-1 Table E-2 Revenue Cost Cash Flow Initial Investment Cost of Capital Weekly Revenue Weekly Expenses Selling Price 2795851 25% 14,850 3,900 6,000,000 Year 0 1 2 3 4 5 New Yearly Revenue New Yearly Expenses There are 52 weeks in a year. 6 NPV IRR