Question: Hello, please help me to answer question a and b with Excel and formulas, thank you so much!!! 10. (Cash-flow analysis) The Less Is More

Hello, please help me to answer question a and b with Excel and formulas, thank you so much!!!

Hello, please help me to answer question a and b
10. (Cash-flow analysis) The "Less Is More" company manufactures swimsuits. The company is considering expanding to the bathrobe market. The proposed investment plan includes: . Purchase of a new machine: The cost of the machine is $150,000. and its expected life span is 5 years. The machine will be depreci- ated to zero salvage value, but the chief economist of the company estimates that it can be sold for $20,000 at the end of 5 years. . Advertising campaign: The head of the marketing department esti- mates that the campaign will cost $80,000 annually. . Fixed costs: Incremental fixed costs of the new department will be $40,000 annually. . Variable costs: First-year variable costs are estimated at $30 per bathrobe, but due to the expected increase in labor costs, they are expected to rise at 5% per year. . Price per bathrobe: Each of the bathrobes will be sold at a price of $45 at the first year. The company estimates that it can raise the price of the bathrobes by 10 in each of the following years. The "Less Is More" discount rate is 106, and the corporate tax rate is 366. a. What is the break-even point of the bathrobe department (what is the minimal number of units it needs to sell so the expansion is profitable)? b. Plot a graph in which the NPV is the dependent variable of the annual production

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