Question: Expected Revenue Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Total Int Rate 5% Annual Year 1 $15.00 $50.00 $19.00 $5.00 $50.00 $139.00
| Expected Revenue | ||||||||||||||||
| Comp 1 | Comp 2 | Comp 3 | Comp 4 | Comp 5 | Total | Int Rate | 5% | Annual | ||||||||
| Year 1 | $15.00 | $50.00 | $19.00 | $5.00 | $50.00 | $139.00 | ||||||||||
| Year 2 | $5.00 | $50.00 | $4.00 | $5.00 | $50.00 | $114.00 | ||||||||||
| Year 3 | $5.00 | $50.00 | $4.00 | $5.00 | $50.00 | $114.00 | ||||||||||
| Year 4 | $5.00 | $50.00 | $4.00 | $5.00 | $50.00 | $114.00 | ||||||||||
| Year 5 | $5.00 | $50.00 | $4.00 | $15.00 | $50.00 | $124.00 | ||||||||||
| $35.00 | $250.00 | $35.00 | $35.00 | $250.00 | $605.00 | |||||||||||
| Operational Cost | Cost Instructions | |||||||||||||||
| Comp 1 | Comp 2 | Comp 3 | Comp 4 | Comp 5 | Total | Comp 1 | 50% of revenue | |||||||||
| Year 1 | Comp 2 | Has 32% Gross Margin | ||||||||||||||
| Year 2 | Comp 3 | 20% of revenue | ||||||||||||||
| Year 3 | Comp 4 | Has 32% Mark up | ||||||||||||||
| Year 4 | Comp 5 | 80% of revenue | ||||||||||||||
| Year 5 | ||||||||||||||||
| $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | |||||||||||
| Gross Profit | ||||||||||||||||
| Opp. 1 | Opp. 2 | Opp. 3 | Opp. 4 | Opp. 5 | Total | |||||||||||
| Year 1 | ||||||||||||||||
| Year 2 | ||||||||||||||||
| Year 3 | ||||||||||||||||
| Year 4 | ||||||||||||||||
| Year 5 | ||||||||||||||||
| $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | |||||||||||
| Gross Margin | ||||||||||||||||
| NPV | ||||||||||||||||
| New Revenue | ||||||||||||||||
| Comp 1 | Comp 2 | Comp 3 | Comp 4 | Comp 5 | Total | Customer is requesting 25% discount in the whole project | ||||||||||
| Year 1 | CFO are not going to allow a GM less than 10% of any of the components | |||||||||||||||
| Year 2 | Also for component 5 the customer wants to be prorated in the the rest of the 5 Years | |||||||||||||||
| Year 3 | ||||||||||||||||
| Year 4 | ||||||||||||||||
| Year 5 | ||||||||||||||||
| $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | it this discount feasible? | ||||||||||
| New Gross Margin | Please show what would be the new Reveune and GM | |||||||||||||||
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
