Part 2 Evaluate different scenarios. The questions are independent of each other. To increase the quality of their products, Milos wanted employees to work overtime, so he gave a raise to employees. As a result, weekly expenses increased by 75%. What should be the percentage increase in revenue so that company still has the same NPV you found in part 1? (You can use tables B-1 and B-2 for this question.)(For goal seek, you must write the NPV by rounding up to the next integer. Use ROUNDUP() function with num_digits3D0.) a Ecem, the marketing manager of Milos, decided to make a social media campaign which started at the beginning of year 4 and will continue for 3 years. As the impact of influencers on social media is increasing day by day, annual revenue is expected to increase by 9% each year. What is the new NPV? (You can use tables C-1 and C-2 for this question.)

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter2: Financial Statements And The Annual Report
Section: Chapter Questions
Problem 2.1AP
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Show formula used for answers. Note table B in the picture is the same table as table C.
A
В
C D
E
F
G
H
1
Table B-1
Table B - 2
2 Initial Investment
3 Cost of Capital
4 Weekly Revenue
5 Weekly Expenses
Year Revenue
Cost
0 (2,677,437.00) (2,677,437.00)
(202,800.00)
(202,800.00)
(202,800.00)
(202,800.00)
(202,800.00)
(202,800.00)
NPV
2,677,437.00
25%
14,850
3,900
Cash Flow
772,200.00
772,200.00
772,200.00
772,200.00
772,200.00
772,200.00
569,400.00
569,400.00
569,400.00
569,400.00
569,400.00
569,400.00
(996,896.17)
7.44%
1
6
7 Selling Price
There are 52 weeks in a year
6,000,000
4
8
6.
10
11
IRR
12
13
14
Transcribed Image Text:A В C D E F G H 1 Table B-1 Table B - 2 2 Initial Investment 3 Cost of Capital 4 Weekly Revenue 5 Weekly Expenses Year Revenue Cost 0 (2,677,437.00) (2,677,437.00) (202,800.00) (202,800.00) (202,800.00) (202,800.00) (202,800.00) (202,800.00) NPV 2,677,437.00 25% 14,850 3,900 Cash Flow 772,200.00 772,200.00 772,200.00 772,200.00 772,200.00 772,200.00 569,400.00 569,400.00 569,400.00 569,400.00 569,400.00 569,400.00 (996,896.17) 7.44% 1 6 7 Selling Price There are 52 weeks in a year 6,000,000 4 8 6. 10 11 IRR 12 13 14
G
Part 2 Evaluate different scenarios. The questions are independent of each other.
8.
To increase the quality of their products, Milos wanted employees to work overtime, so he gave a raise to employees. As
a result, weekly expenses increased by 75%. What should be the percentage increase in revenue so that company still
has the same NPV you found in part 1? (You can use tables B-1 and B-2 for this question.)(For goal seek, you must
write the NPV by rounding up to the next integer. Use ROUNDUP() function with num_digits30.)
9
Ecem, the marketing manager of Milos, decided to make a social media campaign which started at the beginning of year
4 and will continue for 3 years. As the impact of influencers on social media is increasing day by day, annual revenue is
expected to increase by 9% each year. What is the new NPV? (You can use tables C-1 and C-2 for this question.)
b
10
Transcribed Image Text:G Part 2 Evaluate different scenarios. The questions are independent of each other. 8. To increase the quality of their products, Milos wanted employees to work overtime, so he gave a raise to employees. As a result, weekly expenses increased by 75%. What should be the percentage increase in revenue so that company still has the same NPV you found in part 1? (You can use tables B-1 and B-2 for this question.)(For goal seek, you must write the NPV by rounding up to the next integer. Use ROUNDUP() function with num_digits30.) 9 Ecem, the marketing manager of Milos, decided to make a social media campaign which started at the beginning of year 4 and will continue for 3 years. As the impact of influencers on social media is increasing day by day, annual revenue is expected to increase by 9% each year. What is the new NPV? (You can use tables C-1 and C-2 for this question.) b 10
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