Question: Sparkling Water Inc sells 4 6 million bottles of drinking water
Sparkling Water Inc. sells 4.6 million bottles of drinking water each year. Each bottle sells for $2, and costs per bottle are $0.45. Sales income and costs occur at year-end. Sales income is expected to rise at 6 percent annually, while costs are expected to rise at 4 percent annually. The relevant discount rate is 12 percent. The corporate tax rate is 34 percent. What is sparkling worth today?
Answer to relevant QuestionsInternational Buckeyes is building a factory that can make 1 million buckeyes a year for five years. The factory costs $9 million. In year 1, each buckeye will sell for $4.50. The price will rise 5 percent each year. During ...A new electronic process monitor will cost Clarke Designs $145,000. This cost will be depreciated at 25 percent per year (class 9). The monitor will actually be worth-less in six years. The new monitor would save Clarke ...Victoria Enterprises Inc. is evaluating alternative uses for a three-storey manufacturing and warehousing building that it has purchased for $1,450,000. The company could continue to rent the building to the present ...In Problem 9.12, suppose you think it is likely that expected sales will be revised upward to 11,000 units if the first year is a success and revised downward to 4,000 units if the first year is not a success. a. If success ...Suppose the returns on Canada long bonds are normally distributed. Based on the historical record, what is the approximate probability that your return on these bonds will be less than -3.3 percent in a given year? What ...
Post your question