公司理财相关知识(英文版)

1、Chapterr 8: SStrateegy annd Anaalysiss in UUsing Net PPresennt VallueConceptt Quesstionss - Chhapterr 88.1Whhat arre thee wayss a fiirm caan creeate ppositiive NPPV.Be firsst to introoduce a neww prodduct.Furtherr deveelop aa coree comppetenccy to produuct gooods oor serrvicess at llower costss than

2、n comppetitoors.Create a barrrier that makess it ddifficcult ffor thhe othher fiirms tto commpete effecctivelly.Introduuce vaariatiion onn exissting produucts tto takke advvantagge of unsattisfieed demmandCreate produuct diiffereentiattion bby agggressiive addvertiising and mmarketting nnetworrks.Us

3、e innnovatiion inn orgaanizattionall proccessess to ddo alll of tthe abbove.How ccan maanagerrs usee the markeet to help them screeen outt negaative NPV pprojeccts?8.2Whhat iss a deecisioon treee?It is aa methhod too helpp capiital bbudgetting ddecisiion-maakers evaluuatingg projjects invollving seq

4、ueentiall deciisionss. Att everry poiint inn the tree, therre aree diffferentt alteernatiives tthat sshouldd be aanalyzzed.What are ppotenttial pprobleems inn usinng a ddecisiion trree?Potentiial prroblemms 1) that a diffferennt disscountt ratee shouuld bee usedd for diffeerent brancches iin thee tr

5、eee and 2) itt is ddifficcult ffor deecisioon treees too captture mmanageerial optioons.8.3Whhat iss a seensitiivity analyysis?It is aa techhniquee usedd to ddetermmine hhow thhe ressult oof a ddecisiion chhangess whenn somee of tthe paarametters oor asssumptiions cchangee.Why iis it imporrtant to p

6、eerformm a seensitiivity analyysis?Becausee it pproviddes ann anallysis of thhe connsequeences of poossiblle preedictiion orr assuumptioon errrors.What is a breakk-evenn anallysis?It is aa techhniquee usedd to ddetermmine tthe voolume of prroducttion nnecesssary tto breeak evven, tthat iis, too cove

7、er nott onlyy variiable costss but fixedd costts as well.Descrribe hhow seensitiivity analyysis iinteraacts wwith bbreak-even analyysis.Sensitiivity analyysis ccan deetermiine hoow thee finaanciall breaak-eveen poiint chhangess whenn somee facttors (such as fiixed ccosts, variiable costss, or revenn

8、ue) cchangee.Answerss to EEnd-off-Chappter PProbleemsQUESTIOONS ANND PROOBLEMSSDecisioon Treees8.1 Sonny Eleectronnics, Inc., has develloped a neww typee of VVCR. IIf thee firmm direectly goes to thhe markeet witth thee prodduct, theree is oonly aa 50 ppercennt chaance oof succcess. On tthe otther h

9、hand, if the ffirm cconduccts teest maarketiing off the VCR, it wiill taake a year and wwill ccost $2 milllion.Throughh the test markeeting, howeever, the ffirm iis ablle to improove thhe prooduct and iincreaase thhe probaabilitty of succeess too 75 ppercennt. Iff the new pproducct prooves ssuccesss

10、ful, the preseent vaalue (at tthe tiime whhen thhe firrm staarts ssellinng it) of tthe paayoff is $220 milllion, whille if it tuurns oout too be a failuure, tthe prresentt valuue of the ppayofff is $5 milllion. Shouuld thhe firrm connduct test markeeting or goo direectly to thhe marrket? The aapprop

11、priatee disccount rate is 155 perccent.8.1Go direcctly:NPV = 0.5 $20 milliion + 0.5 $5 miillionn = $122.5 miillionnTest mmarketting:NPV = -$2 milliion + (0.755 $200 milllion + 0.255 $5 milliion) / 1.155 = $122.13 mmillioonGo dirrectlyy to tthe maarket.8.2 Thee markketingg manaager ffor a growiing co

12、onsumeer prooductss firmm is cconsidderingg launnchingg a new pproducct. Too deteerminee conssumerss inteerest in suuch a produuct, tthe maanagerr can conduuct a foccus grroup tthat wwill ccost $120,0000 annd hass a 700 perccent cchancee of ccorrecctly pprediccting the ssuccesss of the pproducct, or

13、r hiree a coonsultting ffirm tthat wwill rresearrch thhe marrket aat a ccost oof $400,000. The cconsullting firm boastts a ccorrecct asssessmeent reecord of 900 perccent. Of coourse goingg direectly to thhe marrket wwith nno priior teestingg willl be tthe coorrectt movee 50 ppercennt of the time. If

14、 tthe fiirm laaunchees thee prodduct, and iit is a succcess, the payofff willl be $1.2 milliion.Which aactionn willl resuult inn the higheest exxpecteed payyoff ffor thhe firrm?8.2Foccus grroup: -$1200,000 + 0.770 $11,200,000 = $7200,000Consullting firm: -$4000,0000 + 0.90 $1,2000,000 = $6880,0000Di

15、rectt markketingg: 0.550 $11,200,000 = $6000,000The maanagerr shouuld coonductt a foocus ggroup.8.3 Tanndem BBicyclles iss notiicing a deccline in saales ddue too the increease oof lowwer-prriced imporrt produucts ffrom tthe Faar Easst. Thhe CFOO is cconsidderingg a nuumber of sttrateggies tto maiin

16、tainn its markeet shaare. TThe opptionss she sees are tthe foollowiing: Pricee the produucts mmore aaggresssivelly, reesultiing inn a $11.3 miillionn declline iin cassh floows.The likkelihoood thhat Taandem will lose no caash fllows tto thee impoorts iis 55 perceent; tthere is a45 perccent pprobabbi

17、lityy thatt theyy willl losee onlyy $5500,000 in caash fllows tto thee impoorts. Hire a lobbbyistt to cconvinnce thhe reggulatoors thhat thhere sshouldd be iimporttant ttarifffs plaaced upon oversseas mmanufaactureers off bicyycles. Thiss willl costt Tanddem $8800,0000 andd willl havee a 75 peercent

18、t succcess rrate, that is, nno losss in cash flowss to tthe immporteers. IIf thee lobbbyistss do not ssucceeed, Taandem Bicyccles wwill llose $2 milllion in caash fllows. As thhe asssistannt to the CCFO, wwhich strattegy wwould you rrecommmend tto youur bosss?Accountting BBreak-Even Analyysis8.3Prii

19、ce moore agggresssivelyy:-$1,3000,0000 + (00.55 0) + 0.45 (-$5550,0000)= -$11,547,500Hire llobbyiist:-$800,000 + (0.775 0) + 0.25 (-$2,0000,0000)= -$11,300,000Tandemm shouuld hiire thhe lobbbyistt.8.4 Sammuelsoon Incc. hass inveested in a facillity tto prooduce calcuulatorrs. Thhe priice off the mac

20、hiine iss $600,000 aand itts ecoonomicc lifee is ffive yyears. The machiine iss fullly deppreciaated bby thee straiight-lline mmethodd and will produuce 200,000 unitss of ccalcullatorss in tthe fiirst yyear. The variaable pproducction cost per uunit oof thee calcculatoor is $15, whilee fixeed cossts

21、 arre $9000,0000. The ccorporrate ttax raate foor thee comppany iis 30 perceent. WWhat sshouldd the saless pricce perr unitt of the ccalcullator be foor thee firmm to hhave aa zeroo proffit?8.4Lett salees priice bee x.Deprecciatioon = $600,0000 / 5 = $120,0000BEP: ($900,000 + $1200,000) / (xx - $115

22、) = 20,0000 x = $6668.5 Whaat is the mminimuum nummber oof uniits thhat a distrributoor of big-sscreenn TVs must sell in a givenn periiod too breaak eveen?Sales pprice _ $1,500Variablle cossts _ $1,1000Fixed ccosts _ $1220,0000Depreciiationn _ $220,0000Tax ratte _ 335%8.5Thee accoountinng breeak-evv

23、en= (1220,0000 + 200,000) / (11,500 - 1,1100)= 3500 unitts8.6 Youu are consiiderinng invvestinng in a fleedglinng commpany that cultiivatess aballone ffor saale too locall resttaurannts. TThe prroprieetor ssays hhell reeturn all pprofitts to you aafter coverring ooperatting costss and his ssalaryy.

24、Howw manyy aballone mmust bbe harrvesteed andd soldd in tthe fiirst yyear oof operaationss for you tto gett any paybaack? (Assumme no depreeciatiion.)Price pper addult aabalonne _ $2.00Variablle cossts _ $0.722Fixed ccosts _ $3000,0000Salariees _ $40,0000Tax ratte _ 335%How mucch proofit wwill bbe r

25、etturnedd to yyou iff he ssells 300,0000 abbalonee?8.6a.The aaccounnting breakk-evenn= 340,000 / (2.000 - 00.72)= 265,625 aabalonnesb. ($2.000 3000,000) - (3340,0000 + 00.72 300,0000) (0.655)= $288,600This is thhe aftter taax proofit.Presentt Valuue Breeak-Evven Annalysiis8.7 Usiing thhe infformatti

26、on iin thee probblem aabove, whatt is tthe prresentt valuue breeak-evven pooint iif the ddiscouunt raate iss 15 ppercennt, innitiall inveestmennt is $140,000, and tthe liife off the projeect iss sevenn yearrs? Asssume a strraightt-linee deprreciattion mmethodd withh a zeero saalvagee valuue.8.7EACC=

27、 $1440,0000 / = $33,650Deprecciatioon = $140,0000 / 7 = $20,0000BEP= $33,650 + $3400,000 0.655 - $220,0000 0.335 / ($2 - $0.72) 0.65= 2977,656.25 297,657 uunits8.8 Kidds & TToys IInc. hhas puurchassed a $200,000 mmachinne to produuce tooy carrs. Thhe macchine will be fuully ddeprecciatedd by tthe st

28、traighht-linne metthod ffor itts ecoonomicc lifee of ffive yyears and wwill bbe worthhless afterr its life. The firm expeccts thhat thhe salles prrice oof thee toy is $225 whiile itts varriablee cost is $55. Thee firmm shouuld allso paay $3550,0000 as ffixed costss eachh yearr. Thee corpporatee tax

29、rate for tthe coompanyy is 225 perrcent, and the aapproppriatee disccount rate is 122 perccent. What is thhe preseent vaalue bbreak-even pointt?8.8Deppreciaation = $2000,0000 / 5 = $400,000EAC= $200,000 / = $200,0000 / 3.604478= $555,482BEP= $55,482 + $3500,000 0.755 - $440,0000 0.225 / ($255 - $55)

30、 0.75= 20,532.113 205333 uniits8.9 Thee Cornnchoppper Coompanyy is cconsidderingg the purchhase oof a nnew haarvestter. TThe compaany iss currrentlyy invoolved in deeliberrationns witth thee manuufactuurer aand thhe parrties have not ccome tto setttlemeent reegardiing thhe finnal puurchasse priice.

31、TThe maanagemment oof Corncchoppeer hass hireed youu to ddetermmine tthe brreak-eeven ppurchaase prrice oof thee harvvesterr.This prrice iis thaat whiich wiill maake thhe NPVV of tthe prrojectt zeroo. Basse youur anaalysiss on the ffollowwing ffacts: The nnew haarvestter iss not expeccted tto afffec

32、t rrevenuues, bbut opperatiing exxpensees willl be reducced byy $10,000 pper yeear foor 10 yearss. The oold haarvestter iss now 5 yeaars olld, wiith 100 yearrs of its sscheduuled llife rremainning. It waas purchhased for $45,0000. Itt has been depreeciateed on a strraightt-linee basiis. The oold haa

33、rvestter haas a ccurrennt marrket vvalue of $220,0000. The nnew haarvestter wiill bee deprreciatted onn a sttraighht-linne bassis ovver itts 10-year life. The ccorporrate ttax raate iss 34 ppercennt. The ffirms reqquiredd ratee of rreturnn is 115 perrcent. All ccash fflows occurr at yyear-eend. HHow

34、eveer, thhe iniitial invesstmentt, thee procceeds from selliing thhe oldd harvvesterr, andd any tax eeffectts willl occcur immmediaately. Capiital ggains and lossees aree taxeed at the ccorporrate rrate oof 34 perceent whhen thhey arre reaalizedd. The eexpectted maarket valuee of bboth hharvessters

35、at thhe endd of ttheir econoomic llives is zeero.8.9Lett I bee the breakk-evenn purcchase pricee.Incremmentall C0Sale of thhe oldd machhine$20,0000Tax eeffectt 33,400Totall$23,4400Deprecciatioon perr periiod= $455,000 / 15= $3,000Book vvalue of thhe macchine= $455,000 - 5 $3,0000= $300,000Loss oon s

36、alle of machiine= $300,000 - $200,000= $100,000Tax crredit due tto losss= $100,000 0.344= $3,400Incremmentall costt saviings:$10,0000 (11 - 0.34) = $6,6600Incremmentall deprreciattion ttax shhield:I / 10 - $3,0000 (00.34)The brreak-eeven ppurchaase prrice iis thee Inveestmennt (I), whiich maakes tth

37、e NPPV be zero.NPV= 0= -I + $233,400 + $6,600 + I / 10 - $3,0000 (00.34) = -II + $223,4000 + $66,600 (5.01188) + I (0.034) (5.01188) - $3,0000 (00.34) (5.01188)I = $661,9811Scenariio Anaalysiss8.10 Mss. Thoompsonn, as the CCFO off a cllock mmaker, is cconsidderingg an iinvesttment of a $420,000 mach

38、iine thhat haas a sseven-year life and nno sallvage valuee. Thee machhine iis deppreciaated bby a straiight-lline mmethodd withh a zeero saalvagee overr the sevenn yearrs. Thhe apppropriiate ddiscouunt rate for ccash fflows of thhe prooject is 133 perccent, and tthe coorporaate taax ratte of the cco

39、mpanny is 35 peercentt. Callculatte thee NPV of thhe prooject in thhe folllowinng sceenarioo. Whaat is your concllusionn abouut thee projject?Pessimiistic Expeccted OOptimiisticUnit saales 223,0000 25,0000 277,000Price $ 38 $ 40 $ 42Variablle cossts $ 21 $ 20 $ 19Fixed ccosts $320,000 $300,0000 $228

40、0,00008.10Peessimiistic:NPV= -$4220,0000 + = -$123,0021.711Expectted:NPV= -$4220,0000 + = $2247,8114.17Optimisstic:NPV= -$4220,0000 + = $6653,1446.42Even tthoughh the NPV oof pesssimisstic ccase iis neggativee, if we chhange one iinput whilee all otherrs aree assuumed tto meeet theeir exxpectaation,

41、 we hhave aall poositivve NPVVs likke thee one beforre. TThus, this projeect iss quitte proofitabble.Pessimiistic NPVUnit saales23,000$132,8226.30Price $338$104,0779.33Variablle cossts $221$175,9446.75Fixed ccosts$320,0000$190,3220.248.11 Yoou aree the finanncial analyyst foor a mmanufaactureer of t

42、enniis racckets that has iidentiified a graphhite-llike mmateriial thhat itt is cconsidderingg usinng in its rracketts. Giiven tthe foollowiing inforrmatioon aboout thhe ressults of laaunchiing a new rrackett, willl youu undeertakee the projeect?(Assumpptionss: Taxx ratee _ 400%, Efffectiive diiscou

43、nnt ratte _ 113%, DDeprecciatioon _ $300,0000per yeaar, annd prooductiion wiill occcur oover tthe neext fiive yeears oonly.)Pessimiistic Expeccted OOptimiisticMarket size 110,0000 1220,0000 130,000Market sharee 22% 25% 227%Price $ 115 $ 1200 $ 1225Variablle cossts $ 72 $ 70 $ 68Fixed ccosts $ 8500,0

44、00 $ 8000,000 $ 7500,000Investmment $1,5000,000 $1,5000,0000 $1,5500,00008.11Peessimiistic:NPV= -$1,5500,0000 += -$6675,7001.68Expectted:NPV= -$1,5500,0000 += $3999,3044.88Optimiistic:NPV= -$1,5500,0000 += $1,561,4468.433The exxpecteed preesent valuee of tthe neew tennnis rrackett is $428,3357.211.

45、(AAssumiing thhere aare eqqual cchancees of the 33 scennarioss occuurringg.)8.12 Whhat woould hhappenn to tthe annalysiis donne aboove iff yourr comppetitoor inttroducces a graphhite compoosite that is evven liighterr thann yourr prodduct? What factoors woould tthis llikelyy affeect? DDo an NPPV ana

46、alysiss assuuming markeet sizze inccreasees (duue to more awareeness of grraphitte-bassed rackeets) tto thee leveel preedicteed by the ooptimiistic scenaario bbut yoour maarket sharee decrreasess to the ppessimmisticc leveel (duue to compeetitivve forrces). Whatt doess thiss telll you aboutt the rel

47、attive imporrtancee of mmarkett sizee verssus maarket sharee?8.12 NPV = = $251,581.117The 3% drop in maarket sharee hurtt signnificaantly more than the 110,0000 incrrease in maarket size helpeed. HHoweveer, iff the drop were only 2%, tthe efffectss woulld be aboutt evenn. Maarket size is gooing uup

48、by over 8%, tthus iit seeems maarket sharee is mmore iimporttant tthan mmarkett sizee.The Opttion tto Abaandon8.13 Yoou havve beeen hirred ass a fiinanciial annalystt to ddo a ffeasibbilityy studdy of a neww videeo gamme forr Passiivisioon. Maarketiing reesearcch sugggestss Passsivisiion caan selll 12,000 uunits per yyear aat $62.550 nett cashh floww per unit for tthe neext 100 yearrs. Tootal aannuall operratingg cashh floww is fore