BUS1-173 excel assignment

All the instructions and questions are in the word document. Plesae answer them using the answer sheet. Textflix is a new idea to help reduce college student cost of textbooks.Textflix is a new project to be undertaken by the Netflix Corporation.Textflix will charge $10 per month to have access to a large library of textbooks.It expects to have 8000 users in first year 20000 in second and 150000 in third.To build out this new project new infrastructure for space and new tech equipment will cost $3000000.The costs of each sale will be approximately $50 per year in licensing fees maintenance app space and all the other good things we should consider. Depreciation will be 16% year 1 20% year 2 and 20% year 3 and the building and equipment will be sold for 60% of original purchase price in year 3. Tax rate is 21%. Since this is a new project by an existing firm we will assume this new project matches the overall risk of the current firm thus we can use the firm’s cost of capital directly which is 10.5% (required rate of return). Net working capital invested for the project will be 1000000 today. The company has 3000000 shares outstanding. Calculate the NPV of the project. Accept or Reject? Calculate the IRR of the project. Accept or reject?If you had to choose one of the two approaches above which would you choose and why? Utilizing our pro-forma income statements what is the expected EPS for the firm in year 2 for this scenario. What if the economy goes south?There is a 20% chance this will happen. Well there could be some argument that colleges get more enrollment when the economy slows a bit because while you are out of a job why not go back to school a bit.So let’s say that unit sales increase by 12% each year costs decrease by 3% and the building costs a little less so capex is $2.7 million but can only sell for 45% of original price. Taxes get raised to 29%. Required rate of return is 9%. Calculate NPV IRR and Profitability Index. No qualitative responses. What if the economy keeps running?There is a 40% chance of this. It’s easy to get student loans people don’t care about textbook costs enrollment is lower etc.Therefore unit sales are down 15%. Costs are up 5%. Selling price is down 10%. Required rate of return goes up to 16%. Calculate the NPV. Answer the following questions on the “Economy Keeps Running” sheet. Utilizing our pro-forma income statements what is the expected EPS for the firm in year 2 considering probabilities. What is the expected NPV of entire project considering the three scenarios? Which scenario is most important to understand and why? ‘

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
error: Content is protected !!
Open chat
1
You can contact our live agent via WhatsApp! Via + 1 3234125597

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 25% with the discount code CLASS