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linda_us, Master's Degree
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Satisfied Customers: 6628
Experience:  Business Analyst and Solution Consultant with over 9 years of experience.
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# Chips Home Brew Whiskey management forecasts that if the firm

### Customer Question

Chip’s Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for \$20, then the demand for the product will be 15,000 bottles per year, whereas sales will be 83 percent as high if the price is raised 13 percent. Chip’s variable cost per bottle is \$10, and the total fixed cash cost for the year is \$100,000. Depreciation and amortization charges are \$20,000, and the firm has a 30 percent marginal tax rate. Management anticipates an increased working capital need of \$3,000 for the year. What will be the effect of the price increase on the firm’s FCF for the year?

At \$20 per bottle the Chip’s FCF is \$ and at the new price Chip’s FCF is \$
Submitted: 2 months ago.
Category: Single Problem
Expert:  linda_us replied 2 months ago.
Welcome and Thanks for requesting me.

I am working on it and will post the solution soon.
Customer: replied 2 months ago.

Hi the question is similar but this have different numbers look at the following

Chip’s Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for \$20, then the demand for the product will be 15,000 bottles per year, whereas sales will be 83 percent as high if the price is raised 13 percent. Chip’s variable cost per bottle is \$10, and the total fixed cash cost for the year is \$100,000. Depreciation and amortization charges are \$20,000, and the firm has a 30 percent marginal tax rate. Management anticipates an increased working capital need of \$3,000 for the year. What will be the effect of the price increase on the firm’s FCF for the year?

 At \$20 per bottle the Chip’s FCF is \$ and at the new price Chip’s FCF is \$
Expert:  linda_us replied 2 months ago.
You want me to do the first one or second one.
Customer: replied 2 months ago.

Yes, I have other questions, how much is the price for this?

Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost \$2,233,600. have a life of five years, and would produce the cash flows shown in the following table.

YearCash Flow
1\$491,176
2-248,970
3729,192
41,042,933
5645,511

What is the NPV if the discount rate is 14.04 percent? (Enter negative amounts using negative sign e.g. -45.25. Round answer to 2 decimal places, e.g. 15.25.)

 NPV is \$

Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of \$11.90 million. This investment will consist of \$2.60 million for land and \$9.30 million for trucks and other equipment. The land, all trucks, and all other equipment is expected to be sold at the end of 10 years at a price of \$5.10 million, \$2.37 million above book value. The farm is expected to produce revenue of \$2.06 million each year, and annual cash flow from operations equals \$1.90 million. The marginal tax rate is 35 percent, and the appropriate discount rate is 9 percent. Calculate the NPV of this investment. (Round intermediate calculations and final answer to 2 decimal places, e.g. 15.25.)

 NPV \$

 The project should be acceptedrejected .

 Question 5

Capital Co. has a capital structure, based on current market values, that consists of 25 percent debt, 18 percent preferred stock, and 57 percent common stock. If the returns required by investors are 11 percent, 12 percent, and 15 percent for the debt, preferred stock, and common stock, respectively, what is Capital’s after-tax WACC? Assume that the firm’s marginal tax rate is 40 percent. (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)

 After tax WACC = %

Customer: replied 2 months ago.

The second one

Expert:  linda_us replied 2 months ago.

Are you willing to add \$30 as Bonus for these 3 additional questions.
Customer: replied 2 months ago.

So the price will be \$ 50?

Expert:  linda_us replied 2 months ago.
Yes. Does that sound reasonable to you?
Customer: replied 2 months ago.

Linda \$ 40 works for you? This weekend will I need your help again for other questions. You are always online?

Expert:  linda_us replied 2 months ago.
\$40 will work.

I am usually online during daytime and till 11:30 PM EST. If you need any help with timed assignment then please setup time in advance so that I can free-up my schedule. For non-timed assignment you can request me by writing "FOR LINDA" at start of your post and then post your questions.
Customer: replied 2 months ago.

Ok let's do it ,\$40 is good.

Expert:  linda_us replied 2 months ago.
linda_us, Master's Degree
Category: Single Problem
Satisfied Customers: 6628
Experience: Business Analyst and Solution Consultant with over 9 years of experience.
Customer: replied 2 months ago.

Thank yo so much, you are awesome.

Expert:  linda_us replied 2 months ago.
You are welcome.
Expert:  linda_us replied 2 months ago.
Hi Javier

I thought we agreed to \$40 (\$20 + \$20 Bonus).
Customer: replied 2 months ago.

Yes we talk about a total of 40 and put 2 dollars tip, it does not show that?, I'll check in my account.

Customer: replied 2 months ago.

Yes, you're right.
How do I fix that? I send a check? Just tell me what do I do?

Expert:  linda_us replied 2 months ago.
You can contact customer service to fix it.
Customer: replied 2 months ago.

Okay, I will do it.

Customer: replied 2 months ago.

Already I wrote to them, but do not respond, and if you can give me the option to pay like last time?

Expert:  linda_us replied 2 months ago.
Thanks.

Let me know if your need any help in future.
Customer: replied 2 months ago.

This is a misunderstood believe me. I can I send a check, or I can ask the same question again and again I pay 20 dollars? What do you think?

Expert:  linda_us replied 2 months ago.
I trust you and no need to ask the same question again or pay by check etc.

You can pay me when you need any help in future :-)
Customer: replied 2 months ago.

Linda Okay then I'll close the window, I'm really embarrassed, I am new to using this website, next time I'll pay the 20 dollars, I promise.

Expert:  linda_us replied 2 months ago.
Take care and enjoy your weekend.
Customer: replied 10 days ago.

The following are the example question from my final exam MKT571 do you have the all questions?

If the Ford GT is designed to accelerate to 50 miles per hour within 10 seconds, and every Ford GT coming off the assembly line does this, the model is said to have high ________.

• compatibility

• durability

• conformance quality

• interoperability

A social definition of marketing says ______.

• effective marketing requires companies to remove intermediaries to achieve a closer connection with direct consumers

• marketing is the process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others

• a company should focus exclusively on achieving high production efficiency, low costs, and mass distribution to facilitate the broadest possible access to the company’s products

• marketing is the process of extracting maximum value from consumers to facilitate corporate growth

_______ is an approach that considers different ethnic and cultural segments require targeted marketing campaigns and tactics.

• Specialized marketing

• Diversity marketing

• Multicultural marketing

• Ethnic-based marketing

Expert:  linda_us replied 9 days ago.
When you want to do this assignment?

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