1. ang electronics, inc., has developed a new dvdr. if the dvdr is

1. Ang Electronics, Inc., has developed a new DVDR. If the DVDR is successful, the present value of the payoff (when the product is brought to market) is $22.1 million. If the DVDR fails, the present value of the payoff is $9.5 million. If the product goes directly to market, there is a 47 percent chance of success. Alternatively, Ang can delay the launch by one year and spend $1.1 million to test market the DVDR. Test marketing would allow the firm to improve the product and increase the probability of success to 76 percent. The appropriate discount rate is 8 percent.

Calculate the NPV of going directly to market now. (Do not include the dollar sign ($). Enter your answer in dollars, not millions of dollars. (e.g., 1,234,567))

Calculate the NPV of test marketing first. (Do not include the dollar sign ($). Enter your answer in dollars, not millions of dollars (e.g., 1,234,567). Round your answer to 2 decimal places. (e.g., 32.16))

2. You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information:

Sales price per abalone = $ 93.00
Variable costs per abalone = $ 5.90
Fixed costs per year = $ 690,000.00
Depreciation per year = $ 47,000.00
Tax rate = 33.00 %

The discount rate for the company is 11 percent, the initial investment in equipment is $329,000, and the project’s economic life is seven years. Assume the equipment is depreciated on a straight-line basis over the project’s life.

Requirement 1:
What is the accounting break-even level for the project? (Round your answer to the nearest whole number. (e.g., 32))

Requirement 2:
What is the financial break-even level for the project? (Round your answer to the nearest whole number. (e.g., 32))

We are examining a new project. We expect to sell 3,000 units per year at $52 net cash flow apiece for the next 15 years. In other words, the annual operating cash flow is projected to be $52 × 3,000 = $156,000. The relevant discount rate is 18 percent, and the initial investment required is $670,000. Suppose you think it is likely that expected sales will be revised upward to 3,900 units if the first year is a success and revised downward to 1,500 units if the first year is not a success. The project can be dismantled after the first year and sold for $520,000.

(a) If success and failure are equally likely, the NPV of the project is ____$. Consider the possibility of abandonment in answering. (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16))

(b) The value of the option to abandon is ___$. (Do not include the dollar sign ($). Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16))

4. You bought one of Bergen Manufacturing Co.’s 10 percent coupon bonds one year ago for $770. These bonds make annual payments and mature 10 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 14 percent. If the inflation rate was 3.1 percent over the past year, your total real return on the investment was ______ percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))”

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.