Financial consultant for Alpha Inc

Posted: July 12th, 2021

financial consultant for Alpha Inc

Alpha Inc. a manufacturer of drones has recruited you as a financial consultant. The market for drones is growing quickly. The company bought some land three years ago for $2.1 million in anticipation of using it as a toxic waste dump site but has recently hired another company to handle all toxic materials. Based on a recent appraisal, the company believes it could sell the land for $2.3 million on an after tax basis. In four years, the land could be sold for $2.4 million after taxes. The company also hired a marketing firm to analyze the drone market, at a cost of $125,000. An excerpt of the marketing report is as follows:
The drone industry will have a rapid expansion in the next four years. With the brand name recognition that Alpha brings to bear, we feel that the company will be able to sell 3,600, 4,300, 5,200, and 3,900 units each year for the next four years, respectively. Again, capitalizing on the name recognition of Alpha, we feel that a premium price of $750 can be charged for each drone. Because drones appear to be a fad, we feel at the end of the four-year period, sales should be discontinued.
Alpha believes that fixed costs for the project will be $415,000 per year, and variable costs are 15 percent of sales. The equipment necessary for production will cost $3.5 million and will be depreciated according to a three-year MACRS schedule (see Table 6.4 of your textbook, BMA). At the end of the project, the equipment can be scrapped for $350,000. Net working capital of $125,000 will be required immediately. Alpha has a 38 percent tax rate, and the required return on the project is 13 percent.

What is the NPV of the project?

 

NOTE: Deliver you result on the excel sheet provided below. Make sure you document (comment) as necessary so anyone who looks at it can follow your work. You would be graded based on the numerical results.

Please use the upload button to submit your analysis.

NOTE:

  • explain your result in Post of 500-700 word answers in APA format
  • present not less than 10 pages in power point format

References

Applied Corporate Finance, 4th ed. Damodaran, Aswath Wiley. 2015ISBN-13: 978-1118808931

Principles of Corporate Finance, 10th ed.Brealey, R. A., Myers, S. C., & Allen, F.McGraw Hill Irwin. (2011).ISBN: 978-0073530734

Using our essay writing service.

Our working experience, customer feedback, and market resources have brought about the creation of an exclusive online service. Have you ever wanted to do all of your homework to the best of your abilities but got stuck on the very first task on your to-do list? We know that you deserve your rest, quality time and we are ready and able to handle all your research and academic requirements.

Writing papers is a common source of headaches for students everywhere, especially if they intend to produce something their instructor would consider “excellent”. If you seek professional help with your essays, know that our essay writing service is 24/7 ready to take on your task. Our skilled writers can help you with any assignment you may find hard. Discover what benefits you get by asking us to complete your paper.

Timely delivery

We have delivered more than 98% of student’s papers before the deadline so far. Order your writing task from us and we will send it exactly when you expect it. Great result in a short timeframe. We’re here for you day and night. Connect with customer support around-the-clock for any orders or urgent questions.

Proofreading

For that professional touch we go over all finished work check spelling grammar and formatting to make sure the assignment looks polished and excellent. All our essays are checked for plagiarism before hand over as well an extra set of experts in our QA department to examine on the quality.

Re-writing

If you have done the research and need our specialist to make it worthy of top marks, we will completely rewrite your paper while we guarantee originality. Ask your writer for adjustments and you will have them in no time.

Flexible prices

We often write papers on client friendly price on our website, and you can always choose a longer deadline to save a bit on the price of your order. The more pages you order also reduces the price considerably.

Customer satisfaction.

We know that half of the process depends on customers and their ability to articulate instructions in an effective way. Their views on desired final products must be made clear to the writers. The diversity of the orders we receive has also enable us to largely improve our analytical and research capabilities. Working in the field of academic assistance for a relatively long period we understand that the customer can effectively manage the orders by consistent communication with the writer.

We offer a convenient, simple and unique platform for collaboration between customers and professional writers willing and able to dedicate their skills towards customers’ academic success. Our company support team as well as regulations are excellent and easy to work with for the customer thus fostering professionalism. Our focus is to be a reliable partner and create a long term cooperation with you. For those pursuing personal development, as a company we look forward to offering you numerous interesting projects and opportunities for self-improvement.

Our company is one of the largest and most reliable essay writing services in the world. We provide all forms of assignment help including essay writing, research writing help, calculations help, statistics help, and custom essays help. We have provided custom writing services to thousands of students around the world. We are also among the most affordable essay help service in the world.

Use our service today and experience from academic experts.

 

Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00
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.