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

Comprehensive annual financial report of prince georges

Comprehensive Annual Financial Report of PRINCE GEORGE's COUNTY http://www.mncppc.org/Our_Departments/Central_Administrative_Services/Finance/CAFR/CAFR2015.html Prepare a Power Point presentation... 8-10 slides... COMPRE ...

Who are the major stakeholders of the bank that you do

Who are the major stakeholders of the bank that you do business with locally? What are the major claims of those stakeholders? What is their mission statement and vision statement? Conduct a search and write a minimum of ...

The marketing concept holds that a customers who are coaxed

The marketing concept holds that ________. a. customers who are coaxed into buying a product will most likely buy it again b. a new product will not be successful unless it is priced, distributed, and sold properly c. co ...

Financecarefully work through the analysis of the companys

Finance Carefully work through the analysis of the company's short term financial situation. You will see that the company will be in a negative cash situation three quarters from now. As an adviser to the company you ar ...

Assignmentbullnote some of the assessments in this course

Assignment • Note: Some of the assessments in this course build upon each other, so you are strongly encouraged to complete them in the order in which they are presented. For this assessment, you may use Word or Excel to ...

1 what are the responsibilities of the risk manager in

1. What are the responsibilities of the risk manager in workers' compensation? 2. What role does employee safety play in risk management? 3. How does discrimiantion in the workplace impact managers / supervisors? 4. What ...

Assignmentpart 11 monthly sales were 200000 it was

Assignment Part 1 1) Monthly sales were $200,000. It was estimated that 4% of the units sold would have to be replaced under warranty. On the date of sale the company should record a debit to: A) Sales for $8,000 B) Warr ...

Nbspaccounting assignmentbelow are the balance sheet and

Accounting Assignment Below are the balance sheet and income statement for Happy Hamburger Company. Happy Hamburger Company Balance Sheet as of December 31, 20XX Assets Liabilities and Shareholder Equity Cash 78,000 Acco ...

Tree top company manufactures a single product and uses a

Tree Top Company manufactures a single product and uses a process costing system. On the first day of April, there were 5,000 units in process that were 100% complete as to direct materials and 50% complete as to direct ...

Martin-pullin bicycle corp mpbc located in dallas is a

Martin-Pullin Bicycle Corp. (MPBC), located in Dallas, is a wholesale distributor of bicycles and bicycle parts. Formed in 1981 by cousins Ray Martin and Jim Pullin, the firm's primary retail outlets are located within a ...

  • 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