Chapter 1, Problem 1.6E

A company is thinking of investing in one of two potential new products for sale. The projections are as follows: Year Revenue/cost £ (Product A) Revenue/cost £ (Product B) (150,000) outlay 24,000 (150,000) outlay 12,000 24,000 44,000 84,000 01234 2 25,333 52,000 63,333

The CFO of AkH sp. z 0.0. is developing a financial plan for the company for the year 2022. They would like to check if the strategy, planned for year 2022, is financially viable. According to their calculations, the forecasted financial data for the year 2022 is as follows (all data given in thousands and represent the projected changes between the beginning and end of 2022): a. Revenues = 2,000 b. Operating costs (excluding depreciation) = 1,400 c. Depreciation = 100 d. Other operating costs = 100 e. Financial costs = 50 f. Opening receivables balance = 100, final balance = 200 g. Opening inventory balance = 300, final balance = 500 h. Opening account payables balance = 300, final account payables balance = 500 a. Opening cash balance = 200 j. Credit payment = 100 k. Proceeds from new issuance of shares = 100 ax. Investment expenditure = 300 %3D %3D We also know that the company pays a 19% income tax. a. Based on the given information, please develop a cash flow statement and decide…

An investment services company experienced dramatic growth in the last two decades. The following models for the company's revenue R and expenses or costs C (both in millions of dollars) are functions of the years past 1990. R(t) = 21.4e0.131t and C(t) = 18.6e0.131t (a) Use the models to predict the company's profit In 2021. (Round your answer to one decimal place.) $ 43.8 million (b) How long before the profit found in part (a) is predicted to double? (Round your answer to the nearest whole number.) years after 1990 Enter a number.