1. It is January 1 2020 and you have recently started a new company, GreenDrone, that...

1. It is January 1 2020 and you have recently started a new company, GreenDrone, that produces flying drones for garden maintenance. You are still at the product development stage but would like to evaluate the financial feasibility of the project. Here are some information about the company: - R&D expenditures. In order to develop the drones, you need to hire an engineer for 5 years at an annual salary of $96,000. The salary is paid monthly at the end of the month in equal amounts, i.e. 96,000/12 per month for the first year. To stay competitive, you expect you will have to grow the annual salary at a rate of 3%, starting the next year. The engineer contract starts today, i.e., on January 1 2020. - Production cost. Once the product is developed in 5 years (January 1 2025), you will start the production of your drones. Each product is expected to cost $265 to produce. The cost is to be paid to the supplier at the beginning of a month. - Pricing and sales. You plan to sell the drones for $325 a unit over the next three years, i.e., until January 1 2028. All sales for products produced in a month are collected at the end of the month. The appropriate discount rate r is 5%, annually compounded. Denoting the quantity of drones sold in a month by Q. How many drones do you need to sell per month to make this project profitable (i.e., generate a positive NPV)?

Expert Solution

Drones to be sold on monthly basis is ~ 294 Units.

jeff jeffy answered 3 days ago

It is January 1 2020 and you have recently started a new company, Green- Drone, that...

It is January 1 2020 and you have recently started a new company, Green- Drone, that produces flying drones for garden maintenance. You are stillat the product development stage but would like to evaluate the financial feasibility of the project. Here are some information about the company: - R&D expenditures. In order to develop the drones, you need to hire an engineer for 5 years at an annual salary of $96,000. The salary is paid monthly at the end of...

1) Suppose that you have recently started a new venture with two friends. As you contemplate...

1) Suppose that you have recently started a new venture with two friends. As you contemplate adding employees to your social venture, one of your friends tells you that you need to develop a skills profile to set your hiring priorities. Taking your friend’s advice, develop a skills profile, and explain how it would help you identify the positions you need to fill.

You have recently graduated from school and have started your new job at a Consulting LLC....

You have recently graduated from school and have started your new job at a Consulting LLC. You have been given the following assignment. You are to present an investment analysis of a new residential income producing property an investor is considering purchasing. The asking price for the property is $1,200,000; rents are estimated at $201,000 during the first year and are expected to grow at 3.5% per year thereafter. Vacancies and collection losses are expected to be 11 percent of...

You have recently started working as a product analyst at a company that manufactures and sells...

You have recently started working as a product analyst at a company that manufactures and sells a variety of soft drink products. One of your first jobs is to categorize each of the firm's new products for the upcoming year into the appropriate new product category for a presentation you are putting together for your manager. A new product is one that is new to a company in any way. If a product is functionally different from existing products in...

January 1 – On January 1, 2020, Audrey started her merchandising business and invested P10,000,000 cash...

January 1 – On January 1, 2020, Audrey started her merchandising business and invested P10,000,000 cash and two delivery trucks worth P5,000,000 with an estimated useful life of 10 years and a salvage value of P500,000 as her initial capital. January 1 – Audrey paid insurance policy for P19,000 and recorded it as prepaid insurance. January 20 – Sold goods to customers worth P2.500,000 for cash February 1 – Purchase furniture worth P250,0000 and office equipment worth P850,000 for cash,...

Sandhill Company expects to have a cash balance of $69,000 on January 1, 2020. These are...

Sandhill Company expects to have a cash balance of $69,000 on January 1, 2020. These are the relevant monthly budget data for the first two months of 2020. 1. Collections from customers: January $106,500, February $219,000. 2. Payments to suppliers: January $60,000, February $112,500. 3. Wages: January $45,000, February $60,000. Wages are paid in the month they are incurred. 4. Administrative expenses: January $31,500, February $36,000. These costs include depreciation of $1,500 per month. All other costs are paid as...

1. You just started at a new position at a large investment bank. You have been...

1. You just started at a new position at a large investment bank. You have been assigned to help a senior analyst, Ms. Jones, on a Dutch Auction of shares for Thornton & Danaher Inc. The equity of the firm is currently closely held by the founding families and the senior managers, so there is no available ma rket price. They are hoping to raise about $300,000,000. This represents about 20% of the fi rm’s current equity value. Ms. Jones...

1. Assume you have just started working for a company that does not have an organizational...

1. Assume you have just started working for a company that does not have an organizational chart that shows reporting relationships. How would you go about determining to whom your boss reports and where your department fits in the overall organization structure? 2. Describe managerial skills and behaviors that would be required to manage effectively in a functional department. Are these skills and behaviors different from those required in a product department? Please explain. 3. For what type of an...

You have just started up a new company in Nova Scotia. Your company produces software for...

You have just started up a new company in Nova Scotia. Your company produces software for the “Doctors Online” company which provides medical assessments and treatment recommendations via combination of online doctor appointments and extensive screening questionnaires. You need to invest $200,000 immediately to purchase computer equipment (CCA class number 45 with a CCA rate of 45% and no salvage value). If the anticipated operating costs (excluding your salary) are $15,000 per year increasing at 5% per year (inflation) and...

Metlock Company purchased machinery on January 1, 2020, for $88,000. The machinery is estimated to have...

Metlock Company purchased machinery on January 1, 2020, for $88,000. The machinery is estimated to have a salvage value of $8,800 after a useful life of 8 years. New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect. Compute 2020 depreciation expense using the double-declining-balance method. Depreciation expense $enter Depreciation expense in dollars eTextbook and Media New attempt is in progress. Some of the new entries may impact the...

Question