Question
the sales price to consumers is $150 the retailers markup is 50% Whirlpools after tax profit margin is 4% The hurdle rate is 20% Populations
the sales price to consumers is $150 the retailers markup is 50% Whirlpools after tax profit margin is 4% The hurdle rate is 20% Populations are as follows: Brazil 182 million, China 1.286 billion, and India 1.049 billion. Family size are as follows: Brazil 4.01, China 3.70, and India 4.91. The two-year increase in market penetration is expected to be 20%. To simply your analysis, you decide to calculate the overall two-year increase in sales and allocate 50% to each year 1 and 2. For years 3, 4, and 5 you expect sales to increase by 10% per year.
CALCULATE THE 5-YEAR PRESENT VALUE , NPV IS $34,035,284. PLEASE SHOW ME ALL THE WORK YOU DO IN ORDER TO GET THIS ANSWER NOT ONLY NUMBERS. THANKS!
| Initial Investment | $ (30,000,000) | |||
| Hurdle rate | 20% | |||
| Contribution margin | ||||
| Brazil | China | India | ||
| Population | 182,000,000 | 1,286,000,000 | 1,049,000,000 | |
| Family Size | 4.01 | 3.7 | 4.91 | |
| Total Households | ||||
| Market Penetration | 25% | 8% | 4.5% | |
| Households who already own a washer | ||||
| Forecast 2-yr penetration in % | 20% | 20% | 20% | |
| Forecast 2-yr penetration in units | ||||
| First-year Sales in Units | ||||
| First-year profits | ||||
| Second-year profits | ||||
| Third-year profits | ||||
| Fourth-year profits | ||||
| Fifth-year profits | ||||
| Net Present Value |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Financial Times Essential Guide To Budgeting And Forecasting How To Deliver Accurate Numbers
Authors: Nigel Wyatt
1st Edition
0273768131, 9780273768135
