Project Statement Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | Sales | | 950‚000 | 1‚500‚000 | 1‚500‚000 | 1‚500‚000 | 1‚500‚000 | 1‚500‚000 | 1‚500‚000 | 1‚500‚000 | Direct Cost55% of sales(Sales * 55% = DC) | | 522‚500 | 825‚000 | 825‚000 | 825‚000 | 825‚000 | 825‚000 | 825‚000 | 825‚000 | Indirect Incremental Costs | | 80‚000 | 80‚000 | 80‚000 | 80‚000 | 80‚000 | 80‚000 | 80‚000 | 80‚000 | Depreciation(Plant Cost / Age) | | 200‚000 | 200‚000 | 200‚000 | 200‚000
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A product launch should be evaluated using a business case that is built around the future expected cash flows. However‚ from a portfolio perspective there are some factors that must be considered in forecasting the future expected cash flows. • Cannibalization As new products arrive‚ the revenue and costs involved should not be looked at in isolation. There can be ripple effects across the business where a new product cannibalizes sales from existing products. For example‚ the launch of a new
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Planning Assignment 2: Demand Management (DM) Question I: What advantages do you see in moving from make-to-stock to assemble-to-order or make-to-order? What challenges are likely to be present with assemble-to-order or make-to-order? Answer: The main advantage of ATO/MTO over MTS is its capability of offering a large range of varieties to customers. As such‚ flexibility is the key feature of ATO/MTO. However‚ time will be the most critical element to the success of ATO/MTO because in this case the company
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THE ROLE OF DIVIDEND POLICY IN STOCK PRICE DETERMINATION IN TELECOMMUNICATION INDUSTRY: THE CASE OF PLDT AND GLOBE FATIMA KAYE A. DE CHAVEZ‚ LORELLA A. ESPELETA and LESLIE JOY A. PATIO College of Business and Accountancy University of Batangas ABSTRACT The issue of how much a company should pay its stockholders‚ as dividend is one that has been of concern to managers for a long time. The optimal dividend policy of a firm may be defined as the best dividend payout ratio the firm can adopt
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for the next ten years. Logistics Management. www. Logisticsmgmt.com The article discussed the 10 trends of Logistics management for the next 10 years which affecting Supply Chain. Basically‚ which is said in the article‚ the logistics management should become more integrated‚ technology supported‚ and talented needed. They also did a survey for the executive group to rank the relevance between the 10 trends and business operation. The executive group ranked the service chain‚ product clockspeeds
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(Relevant to Paper II – PBE Management accounting and finance) Simon S P Lee‚ The Chinese University of Hong Kong Dividend Policy Bank distributed a $6.30 dividend per share in 2008. If you purchased shares in Hang Seng Bank at $87 per share‚ the company’s dividend yield was 7.2% ($6.30/$87) which is much higher than the bank deposit rate. Dividend payout ratio is another important indicator: Dividend payout ratio = Dividend per share ÷ Earnings per share Dividend policy is the policy used
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New Year’s Eve: a comparison between China and Brazil. Raif Remígio Alves SBA‚ Zhejiang Gongshang University‚ China. e-mail: raifalves@hotmail.com Introduction A moment to calm‚ review the contents of the past‚ to establish in the present and generate power to carry the future. Thus it is that most people around the world celebrate the new year‚ regardless of their country of origin‚ culture or financial condition. The New Year is always celebrated with much joy‚ peace and prosperity wishes
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The article “The Globe: Cracking the Next Growth Market: Africa” talks about the growing awareness of significant business opportunities in many African countries in the next coming years. Ever since the 2010 FIFA World Cup took place in South Africa‚ economists and executives all agreed that Africa would be the next big emerging market. However‚ companies have been hesitating to enter this new market due to undiversified production structure‚ low human capital‚ poverty‚ famine‚ and disease afflicting
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Paper April 28‚ 2014 Real and Accrual Based Earnings Management 1.1 Introduction The most important item in the financial statements of a company is earnings. Earnings indicate the amount of value-added activities a company has engaged in over a period of time‚ as well as assist in the direction of resource allocation in capital markets. Just as the eyes are the window to the soul‚ earnings are the window to a company’s value. Increasing earnings represent an increasing company value‚ while
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compare the benefits to the cost? 2. The company that you manage has invested $5 million in developing a new product‚ but the development is not quite finished. At a recent meeting‚ your salespeople report that the introduction of competing products has reduced the expected sales of your new product to $4million. If it would cost $3 million to finish development and make the product‚ should you go ahead and do so? What is the most that you should pay to complete development? 3. Explain
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