{"id":425789,"date":"2018-09-12T20:53:00","date_gmt":"2018-09-12T20:53:00","guid":{"rendered":"https:\/\/acemystudy.com\/?p=1837"},"modified":"2018-10-24T08:48:45","modified_gmt":"2018-10-24T08:48:45","slug":"finance-risk-methodologies-respond-to-the-following-scenario-with-your-thoughts-ideas-and-comments-be-substantive-and-clear-and-use-research-to-reinforce-your-ideas","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/finance-risk-methodologies-respond-to-the-following-scenario-with-your-thoughts-ideas-and-comments-be-substantive-and-clear-and-use-research-to-reinforce-your-ideas\/","title":{"rendered":"Finance Risk Methodologies, Respond to the following scenario with your thoughts, ideas, and comments. Be substantive and clear, and use research to reinforce your ideas."},"content":{"rendered":"<p>Respond to the following scenario with your thoughts, ideas, and comments. Be substantive and clear, and use research to reinforce your ideas.<\/p>\n<p>Apix is considering coffee packaging as an additional diversification to its product line. Here\u2019s information regarding the coffee packaging project:<\/p>\n<p>Initial investment outlay of $40 million, consisting of $35 million for equipment and $5 million for net working capital (NWC) (plastic substrate and ink inventory); NWC recoverable in the terminal year<br \/>\nProject and equipment life: 5 years<br \/>\nSales: $27 million per year for five years<br \/>\nAssume gross margin of 50% (exclusive of depreciation)<br \/>\nDepreciation: Straight-line for tax purposes<br \/>\nSelling, general, and administrative expenses: 10% of sales<br \/>\nTax rate: 35%<br \/>\nAssume a WACC of 10%.<\/p>\n<p>Should the coffee packaging project be accepted? Why or why not? Compute the project\u2019s IRR and NPV.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Respond to the following scenario with your thoughts, ideas, and comments. Be substantive and clear, and use research to reinforce your ideas. Apix is considering coffee packaging as an additional diversification to its product line. Here\u2019s information regarding the coffee <a href=\"https:\/\/www.benedictsol.com\/blogs\/finance-risk-methodologies-respond-to-the-following-scenario-with-your-thoughts-ideas-and-comments-be-substantive-and-clear-and-use-research-to-reinforce-your-ideas\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-425789","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/425789","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=425789"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/425789\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=425789"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=425789"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=425789"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}