Q1. Slurm is a soft drink that is a parody of Coca-Cola in the Futurama universe...
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Q1. Slurm is a soft drink that is a parody of Coca-Cola in the Futurama universe (Futurama is a great show, by the way one of my favorites!). The company that makes this beverage is planning on launching a new soft drink with a different flavor. The company estimates that they need to invest $30,000,000 to purchase the facility and the machines needed to produce the drink, and they have to pay $2,500,000 per year to operate the machines and the facility. They also estimate their annual revenues at $9,000,000. Furthermore, they can sell this facility and the machines for $6,000,000 at the end of the project (they still use dollars in the Futurama universe). The project duration is six years. Answer the following questions. (a) What type of investment is this, and why? (b) What is the investment's rate of return using the trial-and-error method? To speed up the process, you can start with 10% as an initial guess and you can stop whenever your rate of return estimate produces a NPW that is between -50,000 and 50,000. Q1. Slurm is a soft drink that is a parody of Coca-Cola in the Futurama universe (Futurama is a great show, by the way one of my favorites!). The company that makes this beverage is planning on launching a new soft drink with a different flavor. The company estimates that they need to invest $30,000,000 to purchase the facility and the machines needed to produce the drink, and they have to pay $2,500,000 per year to operate the machines and the facility. They also estimate their annual revenues at $9,000,000. Furthermore, they can sell this facility and the machines for $6,000,000 at the end of the project (they still use dollars in the Futurama universe). The project duration is six years. Answer the following questions. (a) What type of investment is this, and why? (b) What is the investment's rate of return using the trial-and-error method? To speed up the process, you can start with 10% as an initial guess and you can stop whenever your rate of return estimate produces a NPW that is between -50,000 and 50,000.
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a Tta is being put inte starting busines ownership Inves tment denese money ... View the full answer
Related Book For
OM operations management
ISBN: 978-1285451374
5th edition
Authors: David Alan Collier, James R. Evans
Posted Date:
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