0% Plagiarism Guaranteed & Custom Written

A manufacturing company is thinking of launching a new product.

01 / 10 / 2021 Others

This paper circulates around the core theme of A manufacturing company is thinking of launching a new product. together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.

A manufacturing company is thinking of launching a new product. The
company expects to sell $950,000 of the new product in the first year
and $1,500,000 each year thereafter. Direct costs including labor and
materials will be 45% of sales. Indirect incremental costs are estimated
at $95,000 a year. The project requires a new plant that will cost a
total of $1,500,000, which will be a depreciated straight line over the
next 5 years. The new line will also require an additional net
investment in inventory and receivables in the amount of $200,000.
Assume there is no need for additional investment in building the land
for the project. The firm’s marginal tax rate is 35%, and its cost of
capital is 10%.
MUST show all work, including formulae and calculations used to arrive
at financial values.
Guidelines:
? Using the information in the assignment description:
o Prepare a statement showing the incremental cash flows for this
project over an 8-year period.
o Calculate the payback period (P/B) and the net present value (NPV) for
the project.
o Answer the following questions based on your P/B and NPV calculations:
 Do you think the project should be accepted? Why?
 Assume the company has a P/B (payback) policy of not
accepting projects with life of over 3 years.
 If the project required additional investment in land and
building, how would this affect your decision? Explain.
? A double-spaced Word document of 2 pages that contains your
calculation values, your complete calculations, any formulae that you
used, and your answers to the two questions listed in the assignment
guidelines.
o You must include your explanation of how you used Microsoft Excel for
your calculations if applicable.



International House, 12 Constance Street, London, United Kingdom,
E16 2DQ

Company # 11483120

Benefits You Get

  • Free Turnitin Report
  • Unlimited Revisions
  • Installment Plan
  • 24/7 Customer Support
  • Plagiarism Free Guarantee
  • 100% Confidentiality
  • 100% Satisfaction Guarantee
  • 100% Money-Back Guarantee
  • On-Time Delivery Guarantee
FLAT 50% OFF ON EVERY ORDER. Use "FLAT50" as your promo code during checkout