Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

There are three companies you are considering for your client, Hightower Towers, LLC. You are to answer what they are to do and why. Strongly

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
There are three companies you are considering for your client, Hightower Towers, LLC. You are to answer what they are to do and why. Strongly advised you show the calculations and total of Whatever calculation you are finding for each company. O year is the present and Hightowers wants to do something now. Unless stated otherwise, you know the following: Interest and MARR Interest is expected to be 10% per year MARR is 20% Time 13 weeks in a quarter, 52 weeks in a year, 4 quarters in a year, 3 months per quarter Salary Your average salary cost at is $85 per hour (including all benefits and fringe) Taxation Effective tax rate is 38% Capital & Exchange Capital can be borrowed at 12% per year Hightower Towers has $300K in available funding Exchange Rates USD MXN ARS EURO CAD 1 16.8 9.5 0.9 1.35 Investments Hightower Towers is able to invest in the following, other than buying companies. No amounts in between are excepted, only increments. A. MMG: grants a ROR of 19% per year B. IMG: grants an added $200 on every $1K invested at the end of each year C: OMG each year grants $100 if $1.5K invested, $300 for $3K invested, and $1200 on every $5K invested. contpanyThere arena A money lending institution similar to a credit union located throughout Central America Sales Profile and Future Projection (in thousands of USD vs. years) $290 $330 SUD $300 $270 $240 $10 $150 $120 $120 $120 $120 Operating costs are fixed at 50% of sales per year for years 1 - 10 and $60K in year 0. Tiene La Feria is on sale for $200K Company 2: Tamr Yum Yum A date farm and food production facility in eastern Asia Sales Profile and Future Projection (in thousands of USD vs. years) $25.00 $23.58 $21.44 $19.49 $17.72 $16.11 $14.64 $16.11 $14.64 $13.31 $12.10 $13.1 $12.10 $11.00 $10.00 $10.00 $5.00 (note: difference from year 2 to 1 is the +%10, difference from 3 to 2 is +10%, 4 to 3 is too. Hmmmmm) Operating costs Projection Your associate, an aggie, calculated the operating costs for you and went on vacation. His answer was on a post-it note on your desk "its equivalent to $12.5K per year from years 0 - 10. Don't call me on vacation" Tamr is offering the company for $15K Company 3: Nobody Got Time for That A time management consulting firm done online Sales Profile and Future Projection in thousands of USD vs. years) $20 $20 $20 $20 $20 $20 $20 $16 $25 $la $12 S 1o $10 $10 $10 $ 10 Operating Costs Projection Costs: Salaries will be $5K per year for years 0 - 10. In addition, year 5 will be $13K, year 10 will be $19K for facilities and servers. NGTT can be purchased for $70K 1. What Hightower Towers, LLC, do? A Purchase Company 1, invest remaining money in Investment B B. Purchase Company 2 and 3, invest remaining money in Investment C C. Purchase Company 1, 2 and 3, invest remaining money in Investment C D. Purchase Company 1 and 3, invest remaining money in Investment B E Purchase Company 1 and 3. invest remaining money in Investment C F Purchase Company 1, invest remaining money in Investment A G. Purchase Company 1, invest remaining money in Investment C D. Purchase Company 1, 2 and 3, investreming money in Investme 2. For your option chosen above, how much will be invested after purchasing the company/companies? 3. Which company has the largest sales profile in present worth and how much is it? A. Company 1, Tiene La Feria B. Company 2, Tamr Yum Yum C. Company 3, NGTT 4. Present value of sales: 5. What are the operational costs in present value? Company 1, Tiene La Feria Company 2, Tamr Yum Yum Company 3, NGTT 6. Which investment option, other than the companies, is best? What is the ROR on each company? Company 1, Tiene La Feria 0.052 Company 2, Tamr Yum Yum Company 3, NGTT There are three companies you are considering for your client, Hightower Towers, LLC. You are to answer what they are to do and why. Strongly advised you show the calculations and total of Whatever calculation you are finding for each company. O year is the present and Hightowers wants to do something now. Unless stated otherwise, you know the following: Interest and MARR Interest is expected to be 10% per year MARR is 20% Time 13 weeks in a quarter, 52 weeks in a year, 4 quarters in a year, 3 months per quarter Salary Your average salary cost at is $85 per hour (including all benefits and fringe) Taxation Effective tax rate is 38% Capital & Exchange Capital can be borrowed at 12% per year Hightower Towers has $300K in available funding Exchange Rates USD MXN ARS EURO CAD 1 16.8 9.5 0.9 1.35 Investments Hightower Towers is able to invest in the following, other than buying companies. No amounts in between are excepted, only increments. A. MMG: grants a ROR of 19% per year B. IMG: grants an added $200 on every $1K invested at the end of each year C: OMG each year grants $100 if $1.5K invested, $300 for $3K invested, and $1200 on every $5K invested. contpanyThere arena A money lending institution similar to a credit union located throughout Central America Sales Profile and Future Projection (in thousands of USD vs. years) $290 $330 SUD $300 $270 $240 $10 $150 $120 $120 $120 $120 Operating costs are fixed at 50% of sales per year for years 1 - 10 and $60K in year 0. Tiene La Feria is on sale for $200K Company 2: Tamr Yum Yum A date farm and food production facility in eastern Asia Sales Profile and Future Projection (in thousands of USD vs. years) $25.00 $23.58 $21.44 $19.49 $17.72 $16.11 $14.64 $16.11 $14.64 $13.31 $12.10 $13.1 $12.10 $11.00 $10.00 $10.00 $5.00 (note: difference from year 2 to 1 is the +%10, difference from 3 to 2 is +10%, 4 to 3 is too. Hmmmmm) Operating costs Projection Your associate, an aggie, calculated the operating costs for you and went on vacation. His answer was on a post-it note on your desk "its equivalent to $12.5K per year from years 0 - 10. Don't call me on vacation" Tamr is offering the company for $15K Company 3: Nobody Got Time for That A time management consulting firm done online Sales Profile and Future Projection in thousands of USD vs. years) $20 $20 $20 $20 $20 $20 $20 $16 $25 $la $12 S 1o $10 $10 $10 $ 10 Operating Costs Projection Costs: Salaries will be $5K per year for years 0 - 10. In addition, year 5 will be $13K, year 10 will be $19K for facilities and servers. NGTT can be purchased for $70K 1. What Hightower Towers, LLC, do? A Purchase Company 1, invest remaining money in Investment B B. Purchase Company 2 and 3, invest remaining money in Investment C C. Purchase Company 1, 2 and 3, invest remaining money in Investment C D. Purchase Company 1 and 3, invest remaining money in Investment B E Purchase Company 1 and 3. invest remaining money in Investment C F Purchase Company 1, invest remaining money in Investment A G. Purchase Company 1, invest remaining money in Investment C D. Purchase Company 1, 2 and 3, investreming money in Investme 2. For your option chosen above, how much will be invested after purchasing the company/companies? 3. Which company has the largest sales profile in present worth and how much is it? A. Company 1, Tiene La Feria B. Company 2, Tamr Yum Yum C. Company 3, NGTT 4. Present value of sales: 5. What are the operational costs in present value? Company 1, Tiene La Feria Company 2, Tamr Yum Yum Company 3, NGTT 6. Which investment option, other than the companies, is best? What is the ROR on each company? Company 1, Tiene La Feria 0.052 Company 2, Tamr Yum Yum Company 3, NGTT

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions