Q: Why does the process of generating forecasts of Future Financial Statements for a new product venture generally start with forecasting the Sales line? (more than one answer could be correct) or Q: Why is projecting the sales line typically the first step in creating future financial statement estimates for a new product venture? (More than one response may be…
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The discount rate we use in calculating the net present value of the expected future cash flows associated with the new product venture should: (more than one answer could be correct)
Q: The discount rate we use in calculating the net present value of the expected future cash flows associated with the new product venture should: (more than one answer could be correct) or Q: When determining the net present value of the anticipated future cash flows related to the new product venture, the discount rate we choose should be: (more…
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This question refers to the spreadsheet that we used in our lectures to analyze a New Product Venture. This spreadsheet is titled MODULE 4 – NEW PRODUCT VENTURE – BASE CASE.xls If you’ve been exploring the spreadsheet, make sure everything is re-set to the initial set of assumptions in the spreadsheet. You can verify that everything is correctly reset by making sure the NPV = $26,624 and the IRR = 11.5%. With these settings in place for our New Product Venture’s forecasted financial statements, why is Cash Flow smaller than Net Income in Year 3?
Q: This question refers to the spreadsheet that we used in our lectures to analyze a New Product Venture. This spreadsheet is titled MODULE 4 – NEW PRODUCT VENTURE – BASE CASE.xls If you’ve been exploring the spreadsheet, make sure everything is re-set to the initial set of assumptions in the spreadsheet. You can verify that everything is correctly reset…
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This question refers to the spreadsheet that we used in our lectures to analyze a New Product Venture. This spreadsheet is titled MODULE 4 – NEW PRODUCT VENTURE – BASE CASE.xls In our New Product Venture’s forecasted financial statements, why is Cash Flow larger than Net Income in Year 6?
Q: This question refers to the spreadsheet that we used in our lectures to analyze a New Product Venture. This spreadsheet is titled MODULE 4 – NEW PRODUCT VENTURE – BASE CASE.xls In our New Product Venture’s forecasted financial statements, why is Cash Flow larger than Net Income in Year 6? or Q: This query relates to the spreadsheet we…
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This question refers to the spreadsheet that we used in our lectures to analyze a New Product Venture. This spreadsheet is titled MODULE 4 – NEW PRODUCT VENTURE – BASE CASE.xls Suppose the tax rate that the New Product Venture will face changed to 0%. How should we expect the numbers in the spreadsheet to change? (there could be more than one). Note: You don’t have to do any re-calculations with the spreadsheet to answer this, but you can recalculate if you like.
Q: This question refers to the spreadsheet that we used in our lectures to analyze a New Product Venture. This spreadsheet is titled MODULE 4 – NEW PRODUCT VENTURE – BASE CASE.xls Suppose the tax rate that the New Product Venture will face changed to 0%. How should we expect the numbers in the spreadsheet to change? (there could be…
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This question refers to the spreadsheet that we used in our lectures to analyze a New Product Venture. This spreadsheet is titled MODULE 4 – NEW PRODUCT VENTURE – BASE CASE.xls Make sure everything in the spreadsheet is re-set to the initial set of assumptions in the spreadsheet. You can verify that everything is correctly reset by making sure the NPV = $26,624 and the IRR = 11.5%. If we changed the tax rate to 0%, what is the NPV of the cash flows now?
Q: This question refers to the spreadsheet that we used in our lectures to analyze a New Product Venture. This spreadsheet is titled MODULE 4 – NEW PRODUCT VENTURE – BASE CASE.xls Make sure everything in the spreadsheet is re-set to the initial set of assumptions in the spreadsheet. You can verify that everything is correctly reset by making sure…
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This question refers to the spreadsheet that we used in our lectures to analyze a New Product Venture. This spreadsheet is titled MODULE 4 – NEW PRODUCT VENTURE – BASE CASE.xls With a tax rate = 0% (as above), what Sales Volume per year causes the New Venture to Break Even? That is, it has an NPV of zero at that volume. Feel free to try to use Goalseek to solve this.
Q: This question refers to the spreadsheet that we used in our lectures to analyze a New Product Venture. This spreadsheet is titled MODULE 4 – NEW PRODUCT VENTURE – BASE CASE.xls With a tax rate = 0% (as above), what Sales Volume per year causes the New Venture to Break Even? That is, it has an NPV of zero…
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This question refers to the spreadsheet that we used in our lectures to analyze a New Product Venture. This spreadsheet is titled MODULE 4 – NEW PRODUCT VENTURE – BASE CASE.xls Re-set everything in the spreadsheet. In particular, make sure that the tax rate is 40% and the initial sales volume is 2000. Check that everything is correctly reset by making sure the NPV = $26,624 and the IRR = 11.5%. Now let’s change Research & Development Costs in year 1 and 2 to be $60,000. What is the Internal Rate of Return (IRR) of the new product venture now?
Q: This question refers to the spreadsheet that we used in our lectures to analyze a New Product Venture. This spreadsheet is titled MODULE 4 – NEW PRODUCT VENTURE – BASE CASE.xls Re-set everything in the spreadsheet. In particular, make sure that the tax rate is 40% and the initial sales volume is 2000. Check that everything is correctly reset…
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This question refers to the spreadsheet that we used in our lectures to analyze a New Product Venture. This spreadsheet is titled MODULE 4 – NEW PRODUCT VENTURE – BASE CASE.xls Re-set everything in the spreadsheet. In particular, make sure that the tax rate is 40%, the initial sales volume is 2000, and the R&D costs are $20,000 in years 1 and 2. Check that everything is correctly reset by making sure the NPV = $26,624 and the IRR = 11.5%. Suppose we offer to let customers pay later in the hope that it stimulates more sales. Specifically, suppose customers only pay 80% of the purchase price in the year of the sale (and 20 percent the next year), but that this increases Sales volume per year to 2300 units. What is new Net Present Value of the proposed new product venture?
Q: This question refers to the spreadsheet that we used in our lectures to analyze a New Product Venture. This spreadsheet is titled MODULE 4 – NEW PRODUCT VENTURE – BASE CASE.xls Re-set everything in the spreadsheet. In particular, make sure that the tax rate is 40%, the initial sales volume is 2000, and the R&D costs are $20,000 in…
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Which of the following are on a Balance Sheet? (there can be more than one)
Q: Which of the following are on a Balance Sheet? (there can be more than one) or Q: Which of the following are on a Balance Sheet? (more than one may exist.) Retained Earnings Accounts Payable Depreciation Expense Cash Sales Revenue Explanation: This represents the accumulated earnings of a company that have not been distributed to shareholders as dividends. This…
