McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $835 per set and have a variable cost of $395 per set. The company has spent $280,000 for a marketing study that determined the company will sell 68,800 sets per year for seven years. The marketing study also determined that the company will lose sales of 12,600 sets of its high-priced clubs. The high-priced clubs sell at $1,205 and have variable costs of $665. The company will also increase sales of its cheap clubs by 14,600 sets. The cheap clubs sell for $425 and have variable costs of $215 per set. The fixed costs each year will be $10,450,000. The company has also spent $2,300,000 on research and development for the new clubs. The plant and equipment required will cost $38,600,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $3,000,000 that will be returned at the end of the project. The tax rate is 23 percent, and the cost of capital is 11 percent.
Suppose you feel that the values are accurate to within only ±10 percent. What are the best-case and worst-case NPVs? (Hint: The price and variable costs for the two existing sets of clubs are known with certainty; only the sales gained or lost are uncertain.) (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
In: Finance
McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $835 per set and have a variable cost of $395 per set. The company will sell 68.800 sets per year for seven years. The marketing study also determined that the company will lose sales of 12,600 sets of its high-priced clubs. The high-priced clubs sell at $1.205 and have variable costs of $665. The company will also increase the sales of its cheap clubs by 14,600 sets. The cheap clubs will sell for $425 and have variable costs of $215 per set. The fixed costs each year will be $10,450,000. The company has also spent $2,300,000 on research and development for the new clubs. The plant and equipment required will cost $38,600,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $3,000,000 that will be returned at the end of the project. The tax rate is 23 percent, and the cost of the capital is 11 percent. Suppose you feel that the values are accurate to within only +/- 10 percent. What are the best-case and worst-case NPVs? (Hint: The price and variable costs for the two existing sets of clubs are known with certainty; only the sales gained or lost are uncertain.) (A negative answer should be indicated by a minus sign. Do not round intermediate calculation and round your answers to 2 decimal place, e.g., 32.16.)
In: Finance
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McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $780 per set and have a variable cost of $340 per set. The company has spent $170,000 for a marketing study that determined the company will sell 62,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 10,400 sets of its high-priced clubs. The high-priced clubs sell at $1,150 and have variable costs of $610. The company will also increase sales of its cheap clubs by 12,400 sets. The cheap clubs sell for $370 and have variable costs of $160 per set. The fixed costs each year will be $9,900,000. The company has also spent $1,200,000 on research and development for the new clubs. The plant and equipment required will cost $37,500,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1,900,000 that will be returned at the end of the project. The tax rate is 22 percent, and the cost of capital is 10 percent. |
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Suppose you feel that the values are accurate to within only ±10 percent. What are the best-case and worst-case NPVs? (Hint: The price and variable costs for the two existing sets of clubs are known with certainty; only the sales gained or lost are uncertain.) (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
In: Finance
McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $835 per set and have a variable cost of $395 per set. The company has spent $280,000 for a marketing study that determined the company will sell 68,800 sets per year for seven years. The marketing study also determined that the company will lose sales of 12,600 sets of its high-priced clubs. The high-priced clubs sell at $1,205 and have variable costs of $665. The company will also increase sales of its cheap clubs by 14,600 sets. The cheap clubs sell for $425 and have variable costs of $215 per set. The fixed costs each year will be $10,450,000. The company has also spent $2,300,000 on research and development for the new clubs. The plant and equipment required will cost $38,600,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $3,000,000 that will be returned at the end of the project. The tax rate is 23 percent, and the cost of capital is 11 percent. Suppose you feel that the values are accurate to within only ±10 percent. What are the best-case and worst-case NPVs? (Hint: The price and variable costs for the two existing sets of clubs are known with certainty; only the sales gained or lost are uncertain.) (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
In: Finance
I need the exact answer for:
Best-case NPV:
Worst-case NPV
McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $855 per set and have a variable cost of $415 per set. The company has spent $320,000 for a marketing study that determined the company will sell 70,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 13,400 sets of its high-priced clubs. The high-priced clubs sell at $1,225 and have variable costs of $685. The company will also increase sales of its cheap clubs by 15,400 sets. The cheap clubs sell for $445 and have variable costs of $235 per set. The fixed costs each year will be $10,650,000. The company has also spent $2,700,000 on research and development for the new clubs. The plant and equipment required will cost $39,000,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $3,400,000 that will be returned at the end of the project. The tax rate is 22 percent, and the cost of capital is 10 percent. Suppose you feel that the values are accurate to within only ±10 percent. What are the best-case and worst-case NPVs? (Hint: The price and variable costs for the two existing sets of clubs are known with certainty; only the sales gained or lost are uncertain.)
In: Finance
McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $865 per set and have a variable cost of $425 per set. The company has spent $340,000 for a marketing study that determined the company will sell 70,600 sets per year for seven years. The marketing study also determined that the company will lose sales of 13,800 sets of its high-priced clubs. The high-priced clubs sell at $1,235 and have variable costs of $695. The company will also increase sales of its cheap clubs by 15,800 sets. The cheap clubs sell for $455 and have variable costs of $245 per set. The fixed costs each year will be $10,750,000. The company has also spent $2,900,000 on research and development for the new clubs. The plant and equipment required will cost $39,200,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $3,600,000 that will be returned at the end of the project. The tax rate is 24 percent, and the cost of capital is 12 percent. Suppose you feel that the values are accurate to within only ±10 percent.
What are the best-case and worst-case NPVs? (Hint: The price and variable costs for the two existing sets of clubs are known with certainty; only the sales gained or lost are uncertain.) (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
In: Finance
MGM Co. has decided to sell a new line of golf clubs. The clubs will sell for $850 per set and have a variable cost of $400 per set. The company has spent $300,000 for a marketing study that determined the company will sell 68,500 sets per year for seven years. The marketing study also determined that the company will lose sales of 12,400 sets of its high-priced clubs. The high-priced clubs sell at $1,200 and have variable costs of $660. The company will also increase sales of its cheap clubs by 14,400 sets. The cheap clubs sell for $420 and have variable costs of $210 per set. The fixed costs each year will be $10,400,000. The company has also spent $2,500,000 on research and development for the new clubs. The plant and equipment required will cost $38,500,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $2,900,000 that will be returned at the end of the project. The tax rate is 21 percent, and the cost of capital is 12 percent.
Suppose you feel that the values are accurate to within only +/- 10 percent. What are the best-case and worst-case NPVs? (hint: the price and variable costs for the two existing sets of clubs are known with certainty; only the sales gained or lost are uncertain) *(Can Not use Excel)
In: Finance
20. Project Analysis. McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $845 per set and have a variable cost of $405 per set. The company has spent $150,000 for a marketing study that determined the company will sell 60,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 10,000 sets of its high-priced clubs. The high- priced clubs sell at $1,175 and have variable costs of $620. The company will also increase sales of its cheap clubs by 12,000 sets. The cheap clubs sell for $435 and have variable costs of $200 per set. The fixed costs each year will be $9.75 million. The company has also spent $1 million on research and development for the new clubs. The plan and equipment required will cost $37.1 million and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1.7 million that will be returned at the end of the project. The tax rate is 25 percent, and the cost of capital if 10 percent. Calculate the payback period, the NPV, and the IRR.
21. Sensitivity Analysis. In the previous problem, you feel that the values are accurate to within +/ 10 percent. What are the best-case and worst-case NPVs? Hint: The price and variable costs for the two existing sets of clubs are known with certainty only the sales gained or lost are uncertain.
In: Finance
The total cholesterol levels of a sample of men aged 35-44 are normally distributed with a mean of
223
milligrams per deciliter and a standard deviation of
37.2
milligrams per deciliter.(a) What percent of the men have a total cholesterol level less than
228
milligrams per deciliter of blood?(b) If
251
men in the 35-44 age group are randomly selected, about how many would you expect to have a total cholesterol level greater than 259
milligrams per deciliter of blood?(a) The percent of the men that have a total cholesterol level less than
228
milligrams per deciliter of blood is
nothing%.
(Round to two decimal places as needed.)
In: Statistics and Probability
Statistics exercises
One-way repeated measures ANOVA
1. Suppose you are interested in learning if practice on the ACT improves test scores. You sample a random group of 10 people and ask them to take the ACT 1 time per week for 3 consecutive weeks. Use the data below to determine if practice improves test scores.
|
Participant |
Test 1 |
Test 2 |
Test 3 |
|
1 |
18 |
23 |
24 |
|
2 |
20 |
22 |
26 |
|
3 |
21 |
24 |
23 |
|
4 |
19 |
25 |
28 |
|
5 |
20 |
21 |
23 |
|
6 |
19 |
22 |
25 |
|
7 |
20 |
20 |
20 |
|
8 |
21 |
23 |
25 |
|
9 |
28 |
27 |
29 |
|
10 |
25 |
27 |
26 |
In: Statistics and Probability