Nike has a plan to boost their sales with a new product for the upcoming Football...

 

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Nike has a plan to boost their sales with a new product for the upcoming Football season. This will be a short duration project. They think their cash flows are as such: Expenses: 10/1/2021 of $400,000 and 11/1/2021 of $170,000 to purchase merchandise. The Net Conribution Margin will be based on the weeks and opponent. What is the Present Value of this project on October 1, 2021 assuming a 15% required rate of return? 10/1/21 $ (400,000.00) $ (170,000.00) $ 80,000.00 $ 110,000.00 $ 170,000.00 $ 75,000.00 $ 90,000.00 $ 150,000.00 11/1/21 10/9/21 Maryland 10/23/21 Indiana 10/30/21 Penn State 11/6/21 Nebraska 11/13/21 Purdue 11/20/21 Michigan State A Company is looking at putting solar panels on the roof of their building and they want a very accurate expectation of the value. The annual average electric offset is 370,000 kilowatt hours/year and the price savings if $0.14/KW hr. However, not all months of the year are created equal. They assume that: January and December each contribute 5.5 % of the annual total, February and November each contribute 6.5%, March and October each contribute 8%, April and September each contribute 9%, May and June 10%, July and August 11% each. If the offsetting electric price is constant for 3 years and they invest $100,00o at the end of December 2021, what is the NPV of this 3 year project through Dec 2024 with a 6% MARR? % of Annual Electric Month Savings Jan 5.50% Feb 6.50% March 8.00% April 9.00% May 10.00% June 10.00% July 11.00% August 11.00% September 9.00% October 8.00% November 6.50% December 5.50% O 85287 O 67998 O 98334 O 76888 Nike has a plan to boost their sales with a new product for the upcoming Football season. This will be a short duration project. They think their cash flows are as such: Expenses: 10/1/2021 of $400,000 and 11/1/2021 of $170,000 to purchase merchandise. The Net Conribution Margin will be based on the weeks and opponent. What is the Present Value of this project on October 1, 2021 assuming a 15% required rate of return? 10/1/21 $ (400,000.00) $ (170,000.00) $ 80,000.00 $ 110,000.00 $ 170,000.00 $ 75,000.00 $ 90,000.00 $ 150,000.00 11/1/21 10/9/21 Maryland 10/23/21 Indiana 10/30/21 Penn State 11/6/21 Nebraska 11/13/21 Purdue 11/20/21 Michigan State A Company is looking at putting solar panels on the roof of their building and they want a very accurate expectation of the value. The annual average electric offset is 370,000 kilowatt hours/year and the price savings if $0.14/KW hr. However, not all months of the year are created equal. They assume that: January and December each contribute 5.5 % of the annual total, February and November each contribute 6.5%, March and October each contribute 8%, April and September each contribute 9%, May and June 10%, July and August 11% each. If the offsetting electric price is constant for 3 years and they invest $100,00o at the end of December 2021, what is the NPV of this 3 year project through Dec 2024 with a 6% MARR? % of Annual Electric Month Savings Jan 5.50% Feb 6.50% March 8.00% April 9.00% May 10.00% June 10.00% July 11.00% August 11.00% September 9.00% October 8.00% November 6.50% December 5.50% O 85287 O 67998 O 98334 O 76888

Answer rating: 100% (QA)

Page No Date 8017 Computation Of Net Proent value pue to abse8e of Information regardin... View the full answer