Suppose you are the financial manger, if you are asked to ues limited resources to refine...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Suppose you are the financial manger, if you are asked to ues limited resources to refine the assumptiom on ONLY ONE of the four parmeter which one should you choose and why? sales in year 1 sales growth through year cost of good soled cost of capital Parameter salesin year 1 NPV sales in year2 NPV cost of good sales NPV cost of capital NPV 30000 6% 72% 20% 30000 6% 72% 20% 27000 0% 77% 23% 27000 0% 77% 23% 33000 10% 67% 17% 33000 10% 67% 17% scenario1 scenario2 scenario3 scenario4 sales growth thought year 6 sold 5% 6% 8% 9% cost of good 71% 72% 73% 74% NPV Q:which scenario generates the highest NPV? fill in the blanks hilighted Suppose you are the financial manger, if you are asked to ues limited resources to refine the assumptiom on ONLY ONE of the four parmeter which one should you choose and why? sales in year 1 sales growth through year cost of good soled cost of capital Parameter salesin year 1 NPV sales in year2 NPV cost of good sales NPV cost of capital NPV 30000 6% 72% 20% 30000 6% 72% 20% 27000 0% 77% 23% 27000 0% 77% 23% 33000 10% 67% 17% 33000 10% 67% 17% scenario1 scenario2 scenario3 scenario4 sales growth thought year 6 sold 5% 6% 8% 9% cost of good 71% 72% 73% 74% NPV Q:which scenario generates the highest NPV? fill in the blanks hilighted
Expert Answer:
Answer rating: 100% (QA)
If there are limited resources and only one of the assumptions can be improved for sensitivity analy... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
The following information relates to three of Montreal's Top and Exclusive private training fitness studios in Downtown. Salim's Fitness, Kardiac and Golden gym For each Fitness Studio calculate the...
-
Fox rented a house from Chiodini, but before he moved in, he noticed exposed electrical wiring in the basement, so he refused to move in. City inspectors confirmed a code violation and Chiodini fixed...
-
Briefly list and describe the elements of the criminal justice process.
-
Classify the following items as issuance of stock (I), dividends (D), revenues (R), or expenses (E). Then indicate whether each item increases or decreases stockholders equity. (1) Dividends (2) Rent...
-
Compute the value of an option with strike \(\$ 100\) expiring in four months on underlying asset with present value by \(\$ 97\), using the binomial model. The risk-free interest rate is \(7 \%\)...
-
Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near term. He anticipates his first annual cash flow from the technology to be...
-
The Pet Store experienced the following events for the Year 1 accounting period: Acquired $ 5 0 , 0 0 0 cash from the issue of common stock. Purchased $ 7 2 , 0 0 0 of inventory on account. Received...
-
You are an Examiner for the Refund Integrity Program in the GST/HST Audit Division of the Canada Revenue Agency (CRA). Using sophisticated analytical tools, you are able to identify GST/HST returns...
-
On November 4, 2015, Blue Company acquired an asset (27.5-year residential real property) for $200,000 for use in its business. In 2015 and 2016, respectively, Blue took $642 and $5,128 of cost...
-
How does law in the United States integrate the four foundational legal elements? Constitutional Law Statutory Law Common Law Equity Law Select one type of law and explain how it is applied in the...
-
Apparent and actual authority are concepts applied in what areas of law? explain
-
Discuss how you and other employees use both commonsense theory and working theory at your current or previous workplace. Be sure to explain your points using specific examples.
-
"what is the role of the government interest in determining the constitutionality of government actions? Respond with referenced to atleast 3 substantive areas of constitutional law"
-
How does the theory of planned behavior predict the success of organizational change initiatives?
-
Increase/decrease for signs and symptoms Renal Pathology Renal failure is a condition caused by gradual and progressive loss of renal function. Most common causes: 1) Diabetes 2) Hypertension Signs...
-
What mass of H2 will be produced when 122 g of Zn are reacted? Zn(s) + 2HCl(aq) ( ZnCl2(aq) + H2(g)
-
Find the sum. 4 + 4.5 + 5 + 5.5 + ... + 100
-
Use the given vectors u, v, and w to find each expression. u = 2i - 3j + k, v = -3i + 3j + 2k, w = i + j + 3k. v x v
-
In problem, solve each equation in the real number system. 2x 3 - 11x 2 + 10x + 8 = 0
-
Under an evolutionary classification system, species are grouped together based on (a) their shared similarities. (b) how closely related they are to one another. (c) their position in a hierarchy...
-
What criteria are used to classify species in the Linnaean system?
-
What criteria are used to classify species in an evolutionary classification system?
Study smarter with the SolutionInn App