Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Your team has submitted the following estimated financial projections to VTEPS, Inc. for your BRG Project for a 3 year project, evaluated on a quarterly

Your team has submitted the following estimated financial projections to VTEPS, Inc. for your BRG Project for a 3 year project, evaluated on a quarterly basis:
Development costs are $100,000? quarter for year 1
Ramp-Up costs are $40,000/quarter for Y1Q4 and Y2Q1
Production costs are $35,000/quarter for Y2 through Y3
Marketing costs are $20,000? quarter for Y2 and Y3
Product support costs are $5,000/quarter for Y1 and $20,000/quarter for Y2
Material costs are $15,000/quarter for Y2 and Y3
Sales Revenue is expected to be $200,000/quarter for Y2 and $350,000? quarter for Y3
The VTEPS, Inc. has an annual MARR =20%.
Using Excel determine the following:
The Project PW, AW, FW, IRR, and Payback Period.
If development costs increase to $275,000/quarter for year 1 and all other variables remain the same, determine the project PW, AW, FW, IRR, and Payback Period.
Referring to the original data, if marketing costs double and all other variables remain the same, determine the project PW, AW, FW, IRR, and Payback Period.
Referring to the original data, if both sales revenue is only $150,000? quarter for year 2 and $300,000/quarter for year 3, marketing costs increase 50%, and all other variables remain the same, determine the project PW, AW, FW, IRR, and Payback Period.
image text in transcribed

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

Recommended Textbook for

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

9781119563099

Students also viewed these Finance questions

Question

6.1

Answered: 1 week ago