Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Silly Ventures Unlimited.Your company makes rockets to send satellites, cars and people up in space.An old rocket of yours cost you 2 M ( 2

Silly Ventures Unlimited.Your company makes rockets to send satellites, cars and people up in space.An old rocket of yours cost you 2M (2 million euro) to make but is totally spent and useless to you at this time.An entrepreneur wants to buy it off you for 120.000, to turn it into an eye-catching restaurant.Removing remaining fuel, body parts and chemicals will cost you 50.000 as you don't have those facilities yourself.Some missing parts need to be found to complete the old rocket. 2 windows are available: they do not get used anymore in current or future rockets and cost 7.500 each when purchased. One nose cone was taken off the shelf of current production rockets, with replacement cost of 6.000.Transport is very difficult and will set you back an estimated 25.000, not including the 1000 insurance fee.A cleanup effort will take about 10 man-days, paid at 300/d Please perform a sensitivity analysis on the above deal. Your company's profit is sensitive to
a) The price for the removal of body (?)%price hike
b)the price for the replacement windows, up to (?)% price hike.
c)the price for the fancy nose cones, up to (?)% price hike.
d)the price for the transport, insurance and cleanup combined, up to(?)% price hike.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics of Money, Banking and Financial Markets

Authors: Frederic S. Mishkin

9th Edition

978-0321607751, 9780321599797, 321607759, 0321599799, 978-0321598905

More Books

Students also viewed these Economics questions

Question

How do linear and nonlinear presentations differ? [LO-1]

Answered: 1 week ago