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Questicess are based on the following mini-sas; CGX Tranumtters is developing a 24 peocration optical budpes that the finance group starned and she aks the

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Questicess are based on the following mini-sas; CGX Tranumtters is developing a 24 peocration optical budpes that the finance group starned and she aks the CFO no assign you. Yeu oetloct the following infiremntive: - The project will last for four yean. nenuining book value is roduce tases on a potential re-sale at the end. He telicves that the previous ge? pot cinned for mistakes the this!) for $10 milsion a your four. This number does act include any potential tases un this trancastion. tratamither. docline by an anoual amont of $12 million for each of the next four years. Yoo check with them, and they give you the fillowing breaidown. $175,000 a year for actounting services to prodoce paperwork becewary to run the project and eomply with foderal and stane repulations. and 525,000 towands the evenil costs of maintaining the firm's headquarten. Even thouph the has to be queral over all exinting projects. incone before tax. The trasaminer is appoctod to sell for 511.50 with a per-unit variable cost of 54.20 . The following alo information is compled by the marketing depontmont (ie 5 millica) and set workine copital by the acceunting department 2 Qerstien 1 Take the completed Pro-farma analyois and correct all mistake. made. For your answer, provide the completed Pro-forma analyes with the project OCE, ases, crepital imvestment, side effects, and project set carh flow in years 0,1,2,3, and 4 . Provide all eolamnt and Qerction : What is the NPV of the project? What is the progect's IRR? Should the peopost be daned? Question 3 pive the exelesive rights of the product to the military. They want to know at what perice you can delivel the same quatitio to the military and not sell amy os the opet maiket. (A) The CEO aiks foe the contract bid price (ie, the price per unit) that will guarantee the proget malen sense financially. the company. Questicess are based on the following mini-sas; CGX Tranumtters is developing a 24 peocration optical budpes that the finance group starned and she aks the CFO no assign you. Yeu oetloct the following infiremntive: - The project will last for four yean. nenuining book value is roduce tases on a potential re-sale at the end. He telicves that the previous ge? pot cinned for mistakes the this!) for $10 milsion a your four. This number does act include any potential tases un this trancastion. tratamither. docline by an anoual amont of $12 million for each of the next four years. Yoo check with them, and they give you the fillowing breaidown. $175,000 a year for actounting services to prodoce paperwork becewary to run the project and eomply with foderal and stane repulations. and 525,000 towands the evenil costs of maintaining the firm's headquarten. Even thouph the has to be queral over all exinting projects. incone before tax. The trasaminer is appoctod to sell for 511.50 with a per-unit variable cost of 54.20 . The following alo information is compled by the marketing depontmont (ie 5 millica) and set workine copital by the acceunting department 2 Qerstien 1 Take the completed Pro-farma analyois and correct all mistake. made. For your answer, provide the completed Pro-forma analyes with the project OCE, ases, crepital imvestment, side effects, and project set carh flow in years 0,1,2,3, and 4 . Provide all eolamnt and Qerction : What is the NPV of the project? What is the progect's IRR? Should the peopost be daned? Question 3 pive the exelesive rights of the product to the military. They want to know at what perice you can delivel the same quatitio to the military and not sell amy os the opet maiket. (A) The CEO aiks foe the contract bid price (ie, the price per unit) that will guarantee the proget malen sense financially. the company

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