energygel casereport

When consumers substitution water with an alternative fluid, it has to be approached with extreme caution. Such is the case when the alternative fluid is an energy drink. When water is replaced with an energy drink, the timing of the energy drink intake and the amount of energy drink intake must be clearly understood by the consumer (Attila & Cakir, 2011). The consumer has to be aware that they are depriving and harming the human body in the short term as well as the long term impact to a person’s life with this type of substitution.

* First, we calculate the Net Operating Profit after Tax, which is equals to EBIT×1-t.

The payback period looks at a project only until the costs have been recovered. This analysis tool is often ignored because it does not take into consideration the time value of money. The time value of money limitation of the payback period can be modified by using the discounted cash flows of a project for the analysis of when the outflows will be recovered.

Here is a rundown of the variables we used to first determine the cash flows for Years 0 through 10: depreciation of equipment over the 10 years, sales minus COGS to identify gross profit, summed expenses (advertising, start-up, and Jell-o erosion only; the test market expense in Year 1 is considered a sunk cost and thus should not be included), and subtracted taxes to come up with the cash flow. When assessing the below issues, the team concluded the following

This mini-case provides a review of the methodology and rationale associated with the various capital budgeting evaluation methods such as payback period, discounted payback period, NPV, IRR, MIRR,

Lets take a look at the expenses listed under “general and administrative” on the horizontal analysis worksheet. These particular expenses are costs a business incurs when performing normal operations. For years six and seven there was an increase of a little over 20%, or approximately 156 thousand dollars. Then in years seven and eight there was another slight increase. In order to maintain consistent or increased profits without raising prices and/or selling into new markets in order to increase sales figures, a business would have to cut expenses.

Before tax profit less the tax rate times the before tax profit = after-tax income = $

There are (3) reasons why I have chosen energy drinks as my NAB. First off, there is a growing market for energy drinks. Red Bull and Monster Beverage Corporation, together, form over 80% of domestic energy drinks volumes by estimates. Dollar sales for energy drinks grew almost 6% to $6.67 Billion in measured channels in 2013, which propelled sales growth for convenience stores (Team, 2014). A growing thirst for caffeinated “energy” drinks, which include the likes of Red Bull, Monster, and Rock star, has spurred a heart-thumping surge in sales. Globally, the energy drink industry has gone from a $3.8-billion business in 1999, to a $27.5-billion

Over the years, energy drinks have been a phenomenon. Since 1997, when Red Bull became a sensation, the consumption of energy drinks has been at an all-time high. Currently, the energy drinks is a billion dollar market, with the U.S sales of Red Bull and Monster beverages totaling 4.5 billion dollars in 2016 (Statista, 2017). Other energy drinks in the market include Rock Star, Cocaine, Amp, Full Throttle, and Rip It. Generally, Malinauskas, Aeby, Overton, Carpenter-Aeby, and Barber-Heidal (2007) note, “A number of energy drinks are designed to give the consumer a “jolt” of energy provided by the combination of stimulants and “energy boosters”, including caffeine, herbal extracts such as guarana, ginseng, and ginkgo

A slow growing market is a great way to characterize the energy beverage category in late 2007. This industry was increasing in profits still but was not increasing in profits as quickly due to factors such as market maturity, increasing in prices, competition and new hybrid products (Kerin & Peterson, 2010). The market was still very small but was dominated by Red Bull due to it being one of the first energy drinks, which caused it to dictate the market and have more of an advantage than the other energy beverages. So in late 2007 the market for energy drinks was still

The PAYBACK technique is based on cash flows and it measures the time which is required for a proposal’s initial cash outflow to equal its cash inflow generated by the investment, the solution is expressed in years and month or days.

The market for energy drink has continually been questioned about it health concern. A company can benefit by introducing a healthier option to get energy and have a more active day. When energy drinks first came on the scene they exploded like a new phenomenon, which made consumer feel like new-elevated being. Companies like red bull and rock star brought slogan that increased the energy drinks popularity and made it into a billion dollar industry. With all the scrutiny that has been attacking energy drinks this still has not affected sales according to (Bloomingdale) institute the industry has increase sales 6.7 percent since last year.

In fully investigating all of our calculations we are fully invested in using the Net Present Value figures we calculated as a means of ranking the eight projects. In doing so we found reasons in which why the Net Present Value was our benchmark for ranking the projects and why we did not use the Payback Method. The Payback Method ignores the time value of money, requires and arbitrary cutoff point, ignores cash flows beyond the cutoff date, and is biased against long-term projects, such as research and development and new projects. When comparing the Average Accounting Return Method to the Net Present Value method we found that the Average Accounting Return Method is a worse option than using the Payback Method. The Average Accounting Return Method is not a true rate of return and the time value of money is ignored, it uses an arbitrary benchmark cutoff rate, and is based on accounting net income and book values, not cash flows and market values. Plain and simply put, the Net Present Value method is the best criterion to use when ranking these eight

Energy drinks have outperformed the growth in carbonates in the last few years, and present a substantial opportunity for beverage manufacturers to extract further growth from their sales. There are many driving forces of change and critical success factors in the energy drink industry. Companies such as Coke Cola and Pepsi contend with criticism from health officials due to the excessive caffeine in most high-energy drinks. However, before the 2000’s consumers were accustomed to carbonated soft drinks as the traditional beverage. The shift to an energy drink, sports drink, and vitamin enhanced waters increased sales while becoming an alternative beverage choice for a fast-paced mobile society. Therefore, this industry endures many

Payback period is a method that estimates the amount of time required for the cash flows generated by the investment to repay the cost of the investment. This analysis provides insight into