Order ID:89JHGSJE83839 | Style:APA/MLA/Harvard/Chicago | Pages:5-10 |
Instructions:
Pristine Urban-Tech Zither, Inc. (PUTZ), a superb zither maker, has hired you as a consultant. The zither market is rapidly expanding. The corporation paid $2.1 million for some land three years ago with the intention of using it as a toxic waste dump site, but has since engaged another firm to handle all toxic materials. The corporation says it could sell the land for $2.3 million after taxes, based on a recent appraisal. The farm may be sold for $2.4 million after taxes in four years. At a cost of $125,000, the company also hired a marketing consultancy to investigate the zither industry. The following is an excerpt from the marketing report:
In the next four years, the zither industry will grow at a breakneck pace. We believe that, with PUTZ’s brand name recognition, the company will be able to sell 3,600, 4,300, 5,200, and 3,900 units annually for the next four years, correspondingly. We believe that a premium price of $750 can be charged for each zither, based on PUTZ’s brand recognition. We believe that because zithers appear to be a fad, sales should be stopped at the end of the four-year period.
According to PUTZ, the project’s fixed costs will be $415,000 per year, with variable expenditures accounting for 15% of sales. The production equipment will cost $3.5 million and will be depreciated over three years according to the MACRS plan. The equipment can be scrapped for $350,000 at the end of the project. A total of $125,000 in net working capital will be required right now. The needed return on the project is 13%, and PUTZ has a tax rate of 38%. What is the project’s net present value (NPV)?
Be specific and detailed in your explanations and definitions. Describe the situation in your own words. When necessary, include content references. Peer-reviewed intext citations and references should be used to back up your claims (s).
RUBRIC |
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Excellent Quality 95-100%
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Introduction
45-41 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned. |
Literature Support 91-84 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned. |
Methodology 58-53 points Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met. |
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Average Score 50-85% |
40-38 points More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided. |
83-76 points Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration. |
52-49 points Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met. |
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Poor Quality 0-45% |
37-1 points The background and/or significance are missing. No search history information is provided. |
75-1 points Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration. |
48-1 points There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met |
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3rd Paper on Financial Management |
3rd Paper on Financial Management