Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

Task1. Pappy’s Potato has come up with the new product, the Pet Potato (they are freeze-dried to last longer). Pappy’s paid $120,000 for a marketing survey to determine the viability of the product. It is felt that Pet Potato will generate sales of $575,000 per year. The fixed costs associated with this will be $179,000 per year, and variable costs will amount to 20 percent of sales. The equipment necessary for production of the Potato Pets will cost $620,000 and will be depreciated in a straight-line manner for the four years of the product life (as with all fads, it is felt the sales will end quickly). This is the only initial cost for the production. Pappy’s is in a 40 percent tax bracket and has a required return of 13 percent. find out the payback period, NPV, and IRR.

Task2. You wish for that your portfolio beta is to be 1.112. Currently, your portfolio comprises $200 invested in stock A with the beta of 1.7 and $300 in stock B with a beta of .5. You have another $400 to invest and want to divide it between an asset with the beta of 1.7 and a risk-free asset. How much should you invest in risk-free asset?

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M93998

Have any Question? 


Related Questions in Financial Accounting

Assignmentbullwhen a company owns inventory it has to

Assignment • When a company owns inventory, it has to decide how to consistently value the inventory sold and on hand. Four inventory valuation methods are available to help the organization effectively value its invento ...

1 accrual income versus cash flow for a period thomas book

1. Accrual income versus cash flow for a period Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they must be paid for within 30 days but can be ...

Assignmentangies empanadas cvp and cost behaviortired of

Assignment Angie's Empanadas: CVP and Cost Behavior Tired of the corporate life Angie opened Angie's Empanadas in on April 1st near a large university campus. She had long been told that her empanadas were the best in to ...

Consider four different stocks all of which have a required

Consider four different stocks, all of which have a required return of 18.5 percent and a most recent dividend of $3.65 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the fo ...

1 at what position levels of employees is ethics an

1. At what position levels of employees is ethics an important part of decision making in a company? 2. The Foreign Corrupt Practices Act outlaws what type of business practices and how? 3. Conduct a Porter’s 5 forces an ...

Paper preparation topic abortion- please read instructions

Paper Preparation Topic: Abortion- Please read instructions in red. To prepare for your Paper (due in Week Five), complete the following assignment and submit it to your instructor for feedback. Your paper should include ...

Project part i peyton approved - budget variance reportyou

Project Part I Peyton Approved - Budget Variance Report You are a manager for Peyton Approved, a pet supplies manufacturer. This responsibility requires you to create budgets, make pricing decisions, and analyze the resu ...

Assignmentconstructive retirement at beginning of year

Assignment Constructive Retirement at Beginning of Year (Effective Interest Method) Able Company issued $690,000 of 7 percent first mortgage bonds on January 1, 20X1, at 103. The bonds mature in 20 years and pay interest ...

James investor corporation acquires 25 of the common shares

James (investor) Corporation acquires 25% of the common shares of Heck (investee) Company for $350,000 on January 1, 2014. For 2014, Heck reports net income of $50,000 and paid dividends of $16,000. Instructions (a) Prep ...

Assignmentrecording general fund operating budget and

Assignment Recording General Fund Operating Budget and Operating Transactions. The Town of Bedford Falls approved a General Fund operating budget for the fiscal year ending June 30, 2017. The budget provides for estimate ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro