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The question is quite small, it's the information that is lengthy. Please help!! I will upvote (20 marks) Question 4: The purpose of this general

The question is quite small, it's the information that is lengthy. Please help!! I will upvote
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(20 marks) Question 4: The purpose of this general question is to incorporate the materials leared in this come together in an example. As a financial manager of the Orange le, which is in the business of manufacturing and selling smart glasses, you are asked by the CEO to decide whether the company should undertake a new project that allows virtual reality to be implemented into the man glames (he CEO has found Mark Zuckerberg's video en Meta very inspiring or continue with the old iteration of marteses. The current manufacturing equipment is incapable of implementing the VR upgrade, posing additional challenge if the film is to undertake the project. The following information is provided from the estimates of the accounting team . The project lasts for 5 years after which strategie change in how the fim operates is cxpected Accepting the project requires buying a new machine fespuble of implementing VK) cling your old machine which will be rolete) . The new machine con $10 mild we delivery and installation costs by certified crew members requires S1 million The new machine can be salvaped for 3 millioner 3 years The old machine can be sold today for $2 million or it can be salvagol for S400 thousand after year the fim decide not to dertake the project) . The new machine is igificantly larger than the cast one. Therefore, to install the new machine, a new land must be purchased today for $10 million. This land can be sold for 512 million in 5 year. To operate the new machine, the project requires immediate investment of $300 thound in networking capital, which will increme by 560 thousand per year for each year of the project and will be reclaimed at the end of the project . Sale of the new art pleased to be 8 millions each year, starting from the first yer . I want to people are likely to purchase the last of war. The conting to be that the cabination of the old version of the man will be $1.2 million in the fint you, and dropped by $200 toward . Due to the chip shortage, the accounting team expects that the cost of goods sold would be 53 million each year Encouragine people to purchase the VR smart glisses requires advertisement, which is estimated to cost $1.5 million each year, starting from the first year The new machine is more efficient than the old machine, which helps saving on electricity bills by S500 thousand cach year. The new machine belongs to the 25% CCA rate clan The CEO has been sending you emails sont lately. In his last email he told you that the company has invested 2 million on R&D for the new project in the previous two years, and would hate to see that money go to waste. He has also instructed you to keep the capital structure of the company intact, 40% dicht and equity. To finance the project, you have asked the finance department to provide you with all the relevant information that can help you . You can we new share for the company to be sold in the market for 588.3 each The best of Orange Inequity in the market portfolio inexpected to have a 7% retum The yeld to maturity of 5-year government treasury bills is reported to be 2% The information on the company's outstanding semi-annual bond o Maurity years vel S1005466 Coupe de 5% Face value 51000 . Finally, the tax reis 39% It is in weekend and you have decided that it is finally time to prepare a swer for the CEO Yes pour younella hot cup of coffee, open seel (seriously, we see and get to work. Should the company wept the new projet Ni Terw the question of NP farveping the proje/wAlle nyie afhanks and only thing we held for mark of the years w the proper als vid in the information provided. Note the following (20 marks) Question 4: The purpose of this general question is to incorporate the materials leared in this come together in an example. As a financial manager of the Orange le, which is in the business of manufacturing and selling smart glasses, you are asked by the CEO to decide whether the company should undertake a new project that allows virtual reality to be implemented into the man glames (he CEO has found Mark Zuckerberg's video en Meta very inspiring or continue with the old iteration of marteses. The current manufacturing equipment is incapable of implementing the VR upgrade, posing additional challenge if the film is to undertake the project. The following information is provided from the estimates of the accounting team . The project lasts for 5 years after which strategie change in how the fim operates is cxpected Accepting the project requires buying a new machine fespuble of implementing VK) cling your old machine which will be rolete) . The new machine con $10 mild we delivery and installation costs by certified crew members requires S1 million The new machine can be salvaped for 3 millioner 3 years The old machine can be sold today for $2 million or it can be salvagol for S400 thousand after year the fim decide not to dertake the project) . The new machine is igificantly larger than the cast one. Therefore, to install the new machine, a new land must be purchased today for $10 million. This land can be sold for 512 million in 5 year. To operate the new machine, the project requires immediate investment of $300 thound in networking capital, which will increme by 560 thousand per year for each year of the project and will be reclaimed at the end of the project . Sale of the new art pleased to be 8 millions each year, starting from the first yer . I want to people are likely to purchase the last of war. The conting to be that the cabination of the old version of the man will be $1.2 million in the fint you, and dropped by $200 toward . Due to the chip shortage, the accounting team expects that the cost of goods sold would be 53 million each year Encouragine people to purchase the VR smart glisses requires advertisement, which is estimated to cost $1.5 million each year, starting from the first year The new machine is more efficient than the old machine, which helps saving on electricity bills by S500 thousand cach year. The new machine belongs to the 25% CCA rate clan The CEO has been sending you emails sont lately. In his last email he told you that the company has invested 2 million on R&D for the new project in the previous two years, and would hate to see that money go to waste. He has also instructed you to keep the capital structure of the company intact, 40% dicht and equity. To finance the project, you have asked the finance department to provide you with all the relevant information that can help you . You can we new share for the company to be sold in the market for 588.3 each The best of Orange Inequity in the market portfolio inexpected to have a 7% retum The yeld to maturity of 5-year government treasury bills is reported to be 2% The information on the company's outstanding semi-annual bond o Maurity years vel S1005466 Coupe de 5% Face value 51000 . Finally, the tax reis 39% It is in weekend and you have decided that it is finally time to prepare a swer for the CEO Yes pour younella hot cup of coffee, open seel (seriously, we see and get to work. Should the company wept the new projet Ni Terw the question of NP farveping the proje/wAlle nyie afhanks and only thing we held for mark of the years w the proper als vid in the information provided. Note the following

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