calculate the Net Present Value(NPV) for the Home Depot financial sheet and attach Home Depot (HD) Increase
Question:
calculate the Net Present Value(NPV) for the Home Depot financial sheet and attach
Home Depot (HD)
- Increase the average transaction amount per consumer visit to the store andwebsite.
- Improve analytics to ensure inventory levels are well aligned with consumerdemands.
Increase usage of the Home Depot App within the store to improve the shopping experience and speedcheckout.
Desired units to be sold | 1800 |
Desired units in ending inventory | 575 |
Estimated units in the beginning inventory | 425 |
Selling and Administrative Budget | |
Sales salaries | |
Advertising expenses | |
Travel | |
Officer expenses | |
Supplies | |
Total cost for all selling and administrative budget | $ 30,123 |
Other Revenue and Expenses | |
Interest Expense | $1,200.00 |
Interest Revenue | $50.00 |
Cost of Unit | |
Direct materials, including labor | $35.00 |
Expected Unit Sales Price | |
Including building materials, lawn and garden products, and home appliances, among other things. | $85.00 |
Income Tax Rate | |
Tax Rate | 21% |
Capital Budget Components | |
Current Cost of Equity | 8% |
Current Cost of Debt | 4% |
Current Cost of Preferred Stock | 11% |
Effective negotiated tax rate for project | 25% |
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer