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Question: New product development and sales data in 7 years:

Development/tooling cost, first 3 years (yr 1- yr 3): total $5.13M. Sales in the following 4 years (yr 4- yr 7) : total 315 units. Unit price = $200k. Unit net profit = 15%.

1) Calculate total revenue, annual net profit and total project net return at the end.

2) Assuming a one time Investment $5.13M at the beginning of the project, calculate: a) IRR? b) PV value (discount rate=12%)?

3) Assuming 3 equal investments of a total $5.13M over 2 years, calculate a) IRR? b) NPV (discount rate=14%)?

4) Assuming 3 equal investments of a total $5.13M over 3 years, calculate: IRR? (treat C1 as C0)

5) What is the ROI (SRR) for the project?

6) Assuming 5 equal investments of a total $5.13M over 4 years, calculate IRR?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92855522

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