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Natali [406]
1 year ago
10

The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking u

p." As a result, the cemetery project will provide a net cash inflow of $145,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 4 percent per year forever. The project requires an initial investment of $1,900,000.a-1. What is the NPV for the project if the company's required return is 11 percent?a-2. If the company requires an 11 percent return on such undertakings, should the cemetery business be started?b. The company is somewhat unsure about the 4 percent growth rate assumption in its cash flows. At what constant growth rate would the company just break even if it still required a return of 11 percent on investment?
Business
1 answer:
olasank [31]1 year ago
5 0

<u>Solution and Explanation:</u>

Answer 1  The Net present value = the Present value of all the cash inflows minus the present value of all the cash outflows

$=145000 /(11 \text { percent minus } 4 \text { percent })-1900000$

= $171428.57

Answer a-2) yes, definitely the business should be started as the net present value is positive.

Answer b) Break even growth rate = the required rate – Cash flows / investment

=11 \%-145000 / 1900000

= 3.37 percent.

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Answer:

supplier dependence (B)

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This implies that supplier has upper hand over Mufflon and can do anything without being questioned.

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Answer:

He should focus on customer needs.He should spend his time in the office working rather worrying about home or hobbies.

Explanation:

Brolen's biggest problem is that he is not satisfying customers' needs. He doesn't have a definite Business Plan or strategy to work things out. He does not have a set of targets to achieve and doesn't take the business professionally .He needs guidance to plan out his business activities and needs to work properly without worrying much about home or his hobbies. He should spend his time in the office working rather worrying about home. Spending time on too much emailing will not help him . He needs marketers and other business persons to plan implement and execute business strategies to satisfy customer needs.

4 0
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Read 2 more answers
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2 years ago
g The following facts are known: • The total pounds needed for production are 2 times the units to be produced. • The desired en
OLEGan [10]

Answer and Explanation:

The Preparation of direct material budget is shown below:-

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Particulars                            Amount              

Units to be produced          $90,000   Y

Material per unit                      2  

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Add: Desired ending Direct

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Cost per pound C               $5

Total cost of direct Material

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8 0
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Answer:

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6 0
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