4)1. The NPV of the project is $36,438,244 and the IRR is 312%. Depreciation is not included in the calculation because it is not a cash flow. It impacts flows at the tax level, but the tax rate is not known so this impact could not be calculated.
2. During the sensitivity analysis, the discount rate proves to be irrelevant. Dramatic changes in the hurdle rate are barely reflected in the NPV. Changes in sales volumes have a greater impact, but ultimately sales volumes would need to fall dramatically short in order to impact the project's viability. Selling price is the most important variable. The project's high NPV derives primarily from its contribution margin, which is a gaudy...
Financial Accounting for Management) Dell Inc. is considered to be a multinational technology business that is in the process of developing, manufacturing, sells, and supporting personal computers and other computer- associated products. Founded in Round Rock, Texas, Dell services somewhere around 76,500 people all over the world as of 2012. Dell had gone through their growth process during the 1980s and 1990s to turn into (for a time) the major seller
Managerial and Financial Accounting Case Managerial Accounting - Variable Costing Managerial accounting emphasizes short-term profit analysis, income statement important. Consequently, 'll examine discuss income statements case. Managerial and Financial Accounting Financial and managerial accounting basic difference comes on the uses. While, financial accounts are prepared for use by external parties, managerial accounts are prepared for use internally. The process of preparing the accounts in both financial and managerial accounting use similar source for
Managerial Accounting E-Company Income Statement Contribution Margin For Period Ended Dec 31, 20XX Revenue less V Mfg Cost less V Op/Selling Cost Gross Profit (Contribution Margin) Fixed Mfg Overhead Fixed S&A Exp Total Fixed Costs Net Income $4,765,000 E-Company Income Statement Absorption Method For Period ended Dec 31, 20XX Revenue Less Mfg Cost Less Op/Selling Cost Less S&A Exp Net Income $5,485,500 The gross profit margin is 75.6%. This is calculated as the (revenue -- cogs) / revenue (Investopedia, 2011). The contribution margin is similar, but does not include costs associated with goods
" (Scott, 2007) the problem in China is addressed in the work of Cui (2007) entitled: "China's Growing External Dependence" published by the International Monetary Fund Journal of Finance and Development (IMF) relates that the key to the remarkable economic performance of China over the past three decades has been its.." rapidly growing foreign trade..." (Cui, 2007) Cui states that the conventional view is that the growth for China is
Yet, financial statements and managerial accounting reports can be highly effective nonetheless. Sometimes they will merely confirm what the proprietor already knows, but there are inevitably going to be times when they will reveal that the proprietor's assumptions about the nature of the business are false. Moreover, accounting can act as essentially a second opinion. The proprietor may feel one thing is true, but the numbers can reveal something
Accounting The trend in Netflix's contribution margin ratio over the past three years is as follows. The costs are the COGS plus 30% of other expenses. The remaining 70% of expenses are assumed to be fixed. Netflix Revenue Costs Contribution Contribution Margin The contribution margin for Netflix is therefore lower than it was a couple of years ago. The long-term trend is tough to determine, but it seems that Netflix saw its contribution margin take a hit
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