How to analyze each product’s projected cash flow over a 5-year period? and which new products to launch?

[ad_1]

How to analyze each product’s projected cash flow over a 5-year period? and which new products to launch?

Don't use plagiarized sources. Get Your Custom Essay on
How to analyze each product’s projected cash flow over a 5-year period? and which new products to launch?
Just from $13/Page
Order Essay

*Access up to $30 million dollars from financiers.

*Loan interest rate 6%

*Investor expect a return of 12% on equity.

*weighted average cost of capital is 9.45%.

*30% tax rate on income.

Product 1:

-First year sales are projected to be $15 million with a 10% increase in revenue each year over the next 5 years.

-In the prior two years your company has spent $1 million on the development of this project. To finish the development and create the manufacturing infrastructure to produce it, It is estimated to need another $20 million in equipment purchases. This equipment has a 5-year life.

– Cost of goods sold will be 45% of revenue.

– Incremental SG&A will be 15% of revenue.

– Working capital requirements will be 8% of revenue.

– one-time advertising budget of $2.5 million, which will be spent in the first year of sales.

Product 2:

– Prior years’ development cost for this product has totaled $1.5 million dollars.

– $10 million dollars in new equipment purchases to manufacture this product. The economic life of this equipment is also 5 years.

-forecasts first year revenue at $9.5 million

-one time marketing expense of $1.25 million

-revenue is expected to increase by 7% year over year for the next 5 years.

-costs of goods sold will be 55% of revenue. -Incremental SG&A will be 13% of revenue

-Working capital requirements will be 10% of revenue.

Product 3:

– it will provide an additional $50,000 of cash flow per year in 5-year time period.

-Revenue projections will be $4 million in the first year of sales.

-sales projected to increase by only 2% per year over the next five years.

-require an additional $6 million of capital for equipment with use life 7 years.

-costs of goods sold will be 55% of revenue. -Incremental SG&A will be 13% of revenue

– Working capital requirements will be 12% of revenue.



[ad_2]

Source link

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 15% with the discount code BANANA