Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Lisowski Laptops is investigating the opportunity of developing and selling the notebook computer which is compatible with both Pc’s and Macintosh systems and which can get television signals. Its approximate selling price is= $2500. Variable costs (supplies and labor) will= $1500 per unit, and fixed cost per year would estimated $200,000. Up-front investments in plant and equipment will total= $270,000, which will be straight-line reduced over three years. Initial working capital investment will be= $100,000 and will rise proportionately with sales. Bill, CEO forecast sales of laptop will be= 50,000 units the first year, 60,000 second year and 45,000 the third year, at which time product life cycles would need closing down production of model. At that time, market value of project’s assets will be about= $70,000. LL’s tax rate is 40% and its needed return on projects like this one is 17%. Must Lisowski Laptops offer new computer?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914426

Have any Question? 


Related Questions in Basic Finance

Define default risk asymmetric information adverse

Define default risk, asymmetric information, adverse selection, moral hazard, interest rate risk, liquidity risk, and exchange rate risk.

An online buying club offers a membership for 300 for which

An online buying club offers a membership for $300, for which you will receive a 10 percent discount on all brand-name items you purchase. How much would you have to buy to cover the cost of the membership?

Modern portfolio managers mpm hold a 19 million dollar

Modern Portfolio Managers (MPM) hold a 19 million dollar portfolio of stocks with a beta of 1.25 measured with respect to the S&P 400 index. The current value of the index is 955 and the current value of a futures contra ...

K bell jewelers wishes to explore the effect on its cost of

K. Bell Jewelers wishes to explore the effect on its cost of capital of the rate at whchi the the company pay taxes. The firm wishes to maintain the capital structs of 35% debt, 15% preferred stock, and 50% common stock. ...

Your firm needs a computerized machine tool lathe which

Your firm needs a computerized machine tool lathe which costs $60,000 and requires $13,000 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MAC ...

With financial intermediation net lenders can earn a

"With financial intermediation, net lenders can earn a higher return on their surplus funds, and net borrowers can acquire funds at a lower cost." Explain how this seemingly contradictory statement can be true. (Hint: Co ...

What does too big to fail mean what are the costs of such a

What does "too big to fail" mean? What are the costs of such a policy? Under what circumstances would your funds be safer in a large bank that made risky loans rather than in a small conservative local bank?

Question 1finance has its origins ina economics and

Question 1 Finance has its origins in: a. economics and statistics b. accounting and sociology c. accounting and economics d. psychology and mathematics Question 2 Successful businesses typically progress through a serie ...

The float increases unexpectedlywill the fed typically

The float increases unexpectedly. Will the Fed typically respond with outright purchases or temporary purchases?

Carazona inc is a us firm that has a large subsidiary in

Carazona, Inc., is a U.S. firm that has a large subsidiary in Indonesia. It wants to finance the subsidiary's operations in Indonesia. However, the cost of debt is currently about 30 percent there for firms like Carazona ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate