There is an additional $5 expense per skier per day associated with the new lift. If there are 300 skiers multiplied by $5 each multiplied by the 40 days that they are expected to be on the lift, we will have $60,000 in variable expenses. Fixed costs of $100,000 plus the variable costs of $60,000 will give us $160,000 in total expenses. The gross ticket sales of $660,000 minus the total expenses of $160,000 give us a yearly net income of $500,000. The new lift has an economic life of 20 years and we would like to make 14% on our investment.
Each company buys 300 contracts on average per day, approximately 78,000 contracts annually which means that 1,500 will more than likely default. The rate of interest on the company’s part is determined by an estimate of how much money will be lost. If the interest income from these rates makes up approximately 35% of each company’s net income, then the total amount of interest income would be 37% from these contracts. 1 For the company, the benefit of bringing in a 35% net income outweighs the cost of a 2% loss of interest income. The other point of view, the mechanic’s, involves three solutions to this question.
You believe the stock price will increase above $27 per share by the third week of February which is one month away and is also the February option expiration date. You buy one FEB 27 call option for $.55 per share. Since each option contract is worth 100 shares, you will pay $55 (.55*100) cost for the option excluding commissions. The profit graph at expiration for this option is shown below Real Life Example of a Call Option You probably have already used options in your life and didn’t realize it. Let me give you a real life example of a call option.
Calculate the annual sales revenues and costs (other than depreciation). Why is it important to include inflation when estimateing cash flow? Incremental revenue. The new line would generate incremental sales of 1,250 units per year for 4 years at $200 per unit in the first year, with price increasing by 3% per year. The annual sales revenue would be 1,250 x $200 = $250,000 in year 1.
Cost of Goods directly reflects our targeted 40% profit margin. We anticipate doubling our sales revenue for the first three years of operations as we develop our manufacturing and retail buyer relationships. Sales revenue increases in our second year to $701,000 and $1,402,000 in our third year. The company projects a Net Profit of $40,665 in our first year of operations, increasing to $139,944 in the second year and $317,688 in the third year. Our Cash Flow objective in the first year is ... ... middle of paper ... ...c tax rate.
Wal-Mart sold 1.25 billion in notes and maturity. The notes bear an interest of 4.1.25 % and mature by February 2011. The total quantity of notes allowed to be sold to is up to 4 billion. Target bank is called the Target National Bank. It is owned by the Target Corporations itself and all the receivables go into Target has approximately 1,600 million dollars worth of lines of credits from twenty five different banks, approximately half the worth of the line is used and is due back for payment June 2005, with an extension all the way up to June 2006.
Ratios show the relationship between two figures that are calculated from infor... ... middle of paper ... ...launched a 3 year programme to deliver quality goods and maintain a strong value perception. Since the start of the programme 5000 new products have been launched as well as four new brands. Finally, I will be discussing brand awareness and company profile. In 8 markets Tesco Plc is placed 1st and 2nd for their customers who do over 50% of their shopping with a single retailer. Tesco's own brand is responsible for 38% of its sales.
Sign up bonus is 20,000 miles if you spend $1000 on purchases in the first 3 months. You can redeem your miles for travel statement credits and get additional 5% every time you redeem. General Guidelines for Choosing Travel Card When choosing the right travel card, add the following into
By 1949, Ryder had increased its fleet of trucks to 500. Ryder not only established captive shops for its Full Service Leasing customers, but also expanded its focus by establishing Ryder Preventive Maintenance. Ryder Systems, Inc. went public in 1955, with an initial stock offering of 160,000 shares of common stock sold at $10 per share. By the close of the ... ... middle of paper ... ...$257 million with assets of $9.1 billion for fiscal year 2013. Of their revenue, 84% comes from the U. S., 7% Canada, 6% Europe, 3% Mexico with less than 1% coming from Asia.
Calculate your demand i.e what does your customer typically want every day / week / month. 2. Calculate your available time (excluding breaks and meeting times) 3. Calculate your Takt time, mathematically described as (Available time for production/required units of production) for example, A factory operates 1000 mins per day. Customers demand is 500 units per day, the Takt time is 1000/500 = 2mins 4.