Mathematics
Mathematics, 06.05.2021 16:30, liyah1361

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $500 per set and have a variable cost of $300 per set. The company has spent $125,000 for a marketing study that determined the company will sell 51,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 12,000 sets of its high-priced clubs. The high-priced clubs sell at $800 and have variable costs of $600. The company will also increase sales of its cheap clubs by 10,000 sets. The cheap clubs sell for $300 and have variable costs of $200 per set. The fixed costs each year will be $6,240,000. The company has also spent $936,000 on research and development for the new clubs. The plant and equipment required will cost $16,000,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $899,000 that will be returned at the end of the project. The tax rate is 35 percent, and the cost of capital is 14 percent. McGilla Golf would like to know the sensitivity of NPV to changes in the price of the new clubs and the quantity of new clubs sold.

answer
Answers: 1

Other questions on the subject: Mathematics

image
Mathematics, 21.06.2019 17:30, bazsinghnagoke
What is the number 321,000,000 in scientific notation? also what is the number? ?
Answers: 2
image
Mathematics, 21.06.2019 21:00, Cocco
From the beginning of the day the temperature rose 15 degrees so that by 4 pm it was 87 degrees. what was the temperature at the start of the day
Answers: 1
image
Mathematics, 21.06.2019 22:10, alsiedlaw
If p(a) = 0.70 and p(b) = 0.20, then a and b are independent events if
Answers: 3
image
Mathematics, 21.06.2019 22:20, ashtonviceoxd21i
Which strategy is used by public health to reduce the incidence of food poisoning?
Answers: 1
Do you know the correct answer?
McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $500 per set and...

Questions in other subjects:

Konu
Social Studies, 06.09.2021 14:00
Konu
Social Studies, 06.09.2021 14:00
Konu
English, 06.09.2021 14:00