Question
In: Finance
General Mills has been forced to develop new products to offer to an increasingly demanding market....
General Mills has been forced to develop new products to offer
to an increasingly demanding market. Traditional cereals and
packaged food products are not attractive to a more mobile and
demanding consumer. Technology, health/diet awareness, and
lifestyle have affected how and what consumers demand from the
grocery store.
GM’s kitchens have developed a breakfast meal which is highly
nutritious, can be heated in the microwave for 2 minutes, and can
be consumed while driving because of its unique packaging design.
It has test marketed the product and consumer feedback has been
very positive.
- It will require an initial investment of $15M.
- Cash flows realized after all expenses are expected to be $1M each in the years 1, 2 and 3, $4M in years 4, 5, 6 and 7, and $2M in years 8, 9 and 10.
- All cash flows happen at the end of period. At year 10, the investment would be fully obsolete.
If the cost of capital is 12%, should the company proceed? What is the NPV and IRR? Show all you work.
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Today, consumers are increasingly demanding “green” products, and marketers are responding with more and more products...
Today, consumers are increasingly demanding “green” products,
and marketers are responding with more and more products to meet
that demand. Some companies, however, are “greenwashing” their
products, that is, they are claiming they are more environmentally
friendly than they really are.
Instructions
Answer the following questions:
What are some examples of products that you suspect are being
greenwashed?
What should be done about this problem?
Should there be laws about greenwashing or should marketers do
more to patrol their own...
The annual report of General Mills, maker of Wheaties, Cheerios, and Betty Crocker baking products, for...
The annual report of General Mills, maker of
Wheaties, Cheerios, and Betty Crocker baking
products, for the year ended May 29, 2011, contained the
following($ in millions):
May
29,
2011
May 30, 2010
Total land, building, and
equipment
$7,492.1 $6,949.7
Less: Accumulated
depreciation $4,146.2
$3,822.0
Net land. building, and
equipment $3345.9
$3,127.7
During fiscal 2011, depreciation expense was $472.6 million, and
General Mills acquired land,
buildings, and equipment worth $848.8 million. Assume that no
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disposition of land,...
firms with market power offer differentiated products in order to:
firms with market power offer differentiated products in order
to:
MARKETING RESEARCH The principal activity of General Mills is to produce and market packaged consumer food...
MARKETING RESEARCH
The principal activity of General Mills is to produce and market
packaged consumer food products. The products include cereals,
desserts, flour and baking mixes, dinner and side dish products,
organic products, snacks, beverages and yogurt products. The
products are sold under the brand names namely: Cheerios, Wheaties,
Lucky Charms, Total, Chex, Pillsbury, Haagen-Dazs, Betty Crocker
and Bugles. Wal-Mart Stores, Inc. is one of the major customers of
the Group. As of 2005, the company operated in the United...
MARKETING RESEARCH The principal activity of General Mills is to produce and market packaged consumer food...
MARKETING RESEARCH
The principal activity of General Mills is to produce and market
packaged consumer food products. The products include cereals,
desserts, flour and baking mixes, dinner and side dish products,
organic products, snacks, beverages and yogurt products. The
products are sold under the brand names namely: Cheerios, Wheaties,
Lucky Charms, Total, Chex, Pillsbury, Haagen-Dazs, Betty Crocker
and Bugles. Wal-Mart Stores, Inc. is one of the major customers of
the Group. As of 2005, the company operated in the United...
Why is it importabt for a company to develop new products ?
Why
is it importabt for a company to develop new products ?
An Ambulatory Surgery Center (ASC) has been presented with a proposal to offer a new diagnostic...
An Ambulatory Surgery Center (ASC) has been presented with a
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purchase of a specialized piece of equipment. This piece of
equipment offers physicians the opportunity to diagnose many types
of medical conditions. You've been asked by the Center’s
administrator to use the techniques of preparing a discounted cash
flow analysis to evaluate it from an economic point of view by
computing the Net Present Value and Internal Rate of...
ANALYSIS An Australian manufacturing company is keen to develop new products and develop new product line...
ANALYSIS An Australian manufacturing company is keen to develop
new products and develop new product line of shoes so that the
company can expand into Asian markets more than before. The data
have been collected for 99 products from the market. The data are
in an excel file named “SHOES”. The file includes: PRICE: Price of
the shoes in dollars. GENDER: 1 for Female product and 2 for Male
product. COUNTRY: the country in which the shoes is produced: 1...
ANALYSIS An Australian manufacturing company is keen to develop new products and develop new product line...
ANALYSIS An Australian manufacturing company is keen to develop
new products and develop new product line of shoes so that the
company can expand into Asian markets more than before. The data
have been collected for 99 products from the market. The data are
in an excel file named “SHOES”. The file includes: PRICE: Price of
the shoes in dollars. GENDER: 1 for Female product and 2 for Male
product. COUNTRY: the country in which the shoes is produced: 1...
ANALYSIS An Australian manufacturing company is keen to develop new products and develop new product line...
ANALYSIS An Australian manufacturing company is keen to develop
new products and develop new product line of shoes so that the
company can expand into Asian markets more than before. The data
have been collected for 99 products from the market. The data are
in an excel file named “SHOES”. The file includes: PRICE: Price of
the shoes in dollars. GENDER: 1 for Female product and 2 for Male
product. COUNTRY: the country in which the shoes is produced: 1...
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