V. Rahr and Sons is a Fort Worth brewery founded by Fritz Rahr, a Neeley undergraduate and MBA. Currently the company makes Rahr Blonde Lager, Rahr’s Red, and Ugly Pug brews. They are considering a new beer, Frog Princess, with which to celebrate their ties to TCU. The project includes an initial outlay of $750,000 for the purchase of capital equipment that will be depreciated straight line to zero over six years.
Sales are expected to be $400,000 in years 1-3 and $600,000 in years 4-6. Production costs during years 1-6 are as follows: fixed costs (not including depreciation) are expected to be $150,000 per year; variable costs per year will be 40% of sales. The project will require an initial investment in NWC of 200,000 in year 0.
Beyond year six, the company expects that sales and unlevered net income in year seven will be 4% higher than that in year 6, and will continue growing at 4% per year infinitely. Additionally, in year 7 and beyond, new capital expenditures net of depreciation, and increases in NWC, combined, will be 6% of sales. Assume the marginal tax rate is 21%. The appropriate discount rate is 8%.
What is the NPV of the project? What is the IRR? Should the project be undertaken?
In: Finance
V. Rahr and Sons is a Fort Worth brewery founded by Fritz Rahr, a Neeley undergraduate and MBA. Currently the company makes Rahr Blonde Lager, Rahr’s Red, and Ugly Pug brews. They are considering a new beer, Frog Princess, with which to celebrate their ties to TCU. The project includes an initial outlay of $750,000 for the purchase of capital equipment that will be depreciated straight line to zero over six years.
Sales are expected to be $400,000 in years 1-3 and $600,000 in years 4-6. Production costs during years 1-6 are as follows: fixed costs (not including depreciation) are expected to be $150,000 per year; variable costs per year will be 40% of sales. The project will require an initial investment in NWC of 200,000 in year 0.
Beyond year six, the company expects that sales and unlevered net income in year seven will be 4% higher than that in year 6, and will continue growing at 4% per year infinitely. Additionally, in year 7 and beyond, new capital expenditures net of depreciation, and increases in NWC, combined, will be 6% of sales. Assume the marginal tax rate is 21%. The appropriate discount rate is 8%.
What is the NPV of the project? What is the IRR? Should the project be undertaken?
In: Finance
In Australia, when calculating the total tax liability of an individual resident what happens with dividends earned from an investment and franked credits
Example: An individual made $10,000 from dividends and $3,000 of those were franked credits.
Question: using this formula income tax = (taxable income x tax rate) - tax offsets. Would I add the 10,000 to the taxable income and then add the 3,000 franked credits to the tax offsets. If not how and where would I input the numbers into he formula?
In: Accounting
The problem of many developing businesses has always been attributed to insufficient or lack of capital to run these enterprises. But on taking an MBA course at the University, you have come to realize that most businesses in Ghana and Africa fail not because of capital adequacy issues but rather, human resources management issues. What significant expectations would you give to all HR managers as needed competences to be equipped with if you are the consultant general to businesses in Ghana? Discuss these factors or requirements in not more than One and half (11 /2) pages.
In: Finance
The problem of many developing businesses has always been attributed to insufficient or lack of capital to run these enterprises. But on taking an MBA course at the University of Ghana Business School, you have come to realize that most businesses in Ghana and Africa fail not because of capital adequacy issues but rather, human resources management issues. What significant expectations would you give to all HR managers as needed competences to be equipped with if you are the consultant general to businesses in Ghana? Discuss these factors or requirements (in not more than One and half pages).
In: Psychology
Mary, the plant manager of Southern Oregon Injection Molding, Inc. (SOIM), is pondering an interesting offer made by the president and majority shareholder, Kenny. Kenny recently turned sixty and is planning a gradual retirement. None of his children are interested in taking over the business and are currently pursuing careers unrelated to the plastics industry, so Kenny has decided to offer his controlling share to Mary.
SOIM began by manufacturing plastic lawn ornaments, including a colorful tropical bird that became a major fad in the 1980s. Pleased and amused by the success of his fanciful product, Kenny added rabbits, skunks, trolls, angels, and garden fairies to the product line. Under Mary’s leadership, SOIM has also become an important secondary supplier of plastic housings for speakers, cell phones, calculators, and similar products.
Marry started working at SOIM as a color technician shortly after graduating from Southern Oregon University with a degree in chemical engineering. Within five years, she became the plant manager, a position she has held for the last eight years. Along the way, she has earned an MBA through the evening program at Southern Oregon University.
Because SOIM stock is publicly traded, we can confidently assign a value of $10,000,000 to Kenny’s shares. Kenny has stated that he is open to any reasonable plan to finance the purchase.
Questions
1. Mary could probably borrow the money to purchase the shares outright because the shares would serve as collateral and dividends would cover a good part of the loan payments. The interest rate is 7%, and the lender will amortize the loan with a series of equal payments. What are the annual payments if the bank amortizes the loan over five, ten, or twenty years?
2. Repeat Question 1, but assume that Mary makes payments at the beginning of each year.
In: Finance
In: Economics
What is Nucor Skill? Who is the first to establish
it?
How it got famous?
when did it founded and by who? Example?
What is the job looks like? How can someone apply?
Just write 2 page about Nucor Skill.
I need help with this please
In: Finance
Who is the most powerful person you know personally? What is it that makes the person so powerful? Be sure to answer this question in the context of the information presented in the chapter.
In: Operations Management
this discussion invites you to consider the validity of this interpretation of political globalization, by reflecting on the current COVID-19 health pandemic and considering what the global response to this crisis tells us about the relative power of individual states, and the role of IGOs like the World Health Organization (WHO). To what extent are we currently living in an era of global governance? To what extent do individual states retain sovereignty? Are all states equally independent? Would a 'real' world government be preferable in the face of this kind of global pandemic? Why or why not? Compare and contrast two countries, the best and worst, to find out how are some states responding to the COVID -19 crisis? At an individual level, what are you doing to flatten the curve?
In: Psychology