公司理财第8章

AnswerstoEnd-of-ChapterProblemsB-91Chapter8:StrategyandAnalysisinUsingNetPresentValueConceptQuestions-Chapter88.1WhatarethewaysafirmcancreatepositiveNPV.1.Befirsttointroduceanewproduct.2.Furtherdevelopacorecompetencytoproductgoodsorservicesatlowercoststhancompetitors.3.Createabarrierthatmakesitdifficultfortheotherfirmstocompeteeffectively.4.Introducevariationonexistingproductstotakeadvantageofunsatisfieddemand5.Createproductdifferentiationbyaggressiveadvertisingandmarketingnetworks.6.Useinnovationinorganizationalprocessestodoalloftheabove.HowcanmanagersusethemarkettohelpthemscreenoutnegativeNPVprojects?8.2Whatisadecisiontree?Itisamethodtohelpcapitalbudgetingdecision-makersevaluatingprojectsinvolvingsequentialdecisions.Ateverypointinthetree,therearedifferentalternativesthatshouldbeanalyzed.Whatarepotentialproblemsinusingadecisiontree?Potentialproblems1)thatadifferentdiscountrateshouldbeusedfordifferentbranchesinthetreeand2)itisdifficultfordecisiontreestocapturemanagerialoptions.8.3Whatisasensitivityanalysis?Itisatechniqueusedtodeterminehowtheresultofadecisionchangeswhensomeoftheparametersorassumptionschange.Whyisitimportanttoperformasensitivityanalysis?Becauseitprovidesananalysisoftheconsequencesofpossiblepredictionorassumptionerrors.Whatisabreak-evenanalysis?Itisatechniqueusedtodeterminethevolumeofproductionnecessarytobreakeven,thatis,tocovernotonlyvariablecostsbutfixedcostsaswell.Describehowsensitivityanalysisinteractswithbreak-evenanalysis.Sensitivityanalysiscandeterminehowthefinancialbreak-evenpointchangeswhensomefactors(suchasfixedcosts,variablecosts,orrevenue)change.AnswerstoEnd-of-ChapterProblemsB-92AnswerstoEnd-of-ChapterProblemsQUESTIONSANDPROBLEMSDecisionTrees8.1SonyElectronics,Inc.,hasdevelopedanewtypeofVCR.Ifthefirmdirectlygoestothemarketwiththeproduct,thereisonlya50percentchanceofsuccess.Ontheotherhand,ifthefirmconductstestmarketingoftheVCR,itwilltakeayearandwillcost$2million.Throughthetestmarketing,however,thefirmisabletoimprovetheproductandincreasetheprobabilityofsuccessto75percent.Ifthenewproductprovessuccessful,thepresentvalue(atthetimewhenthefirmstartssellingit)ofthepayoffis$20million,whileifitturnsouttobeafailure,thepresentvalueofthepayoffis$5million.Shouldthefirmconducttestmarketingorgodirectlytothemarket?Theappropriatediscountrateis15percent.8.1Godirectly:NPV=0.5$20million+0.5$5million=$12.5millionTestmarketing:NPV=-$2million+(0.75$20million+0.25$5million)/1.15=$12.13millionGodirectlytothemarket.8.2Themarketingmanagerforagrowingconsumerproductsfirmisconsideringlaunchinganewproduct.Todetermineconsumers’interestinsuchaproduct,themanagercanconductafocusgroupthatwillcost$120,000andhasa70percentchanceofcorrectlypredictingthesuccessoftheproduct,orhireaconsultingfirmthatwillresearchthemarketatacostof$400,000.Theconsultingfirmboastsacorrectassessmentrecordof90percent.Ofcoursegoingdirectlytothemarketwithnopriortestingwillbethecorrectmove50percentofthetime.Ifthefirmlaunchestheproduct,anditisasuccess,thepayoffwillbe$1.2million.Whichactionwillresultinthehighestexpectedpayoffforthefirm?8.2Focusgroup:-$120,000+0.70$1,200,000=$720,000Consultingfirm:-$400,000+0.90$1,200,000=$680,000Directmarketing:0.50$1,200,000=$600,000Themanagershouldconductafocusgroup.8.3TandemBicyclesisnoticingadeclineinsalesduetotheincreaseoflower-pricedimportproductsfromtheFarEast.TheCFOisconsideringanumberofstrategiestomaintainitsmarketshare.Theoptionssheseesarethefollowing:•Pricetheproductsmoreaggressively,resultingina$1.3milliondeclineincashflows.ThelikelihoodthatTandemwilllosenocashflowstotheimportsis55percent;thereisa45percentprobabilitythattheywillloseonly$550,000incashflowstotheimports.•Hirealobbyisttoconvincetheregulatorsthatthereshouldbeimportanttariffsplaceduponoverseasmanufacturersofbicycles.ThiswillcostTandem$800,000andwillhavea75percentsuccessrate,thatis,nolossincashflowstotheimporters.Ifthelobbyistsdonotsucceed,TandemBicycleswilllose$2millionincashflows.AstheassistanttotheCFO,whichstrategywouldyourecommendtoyourboss?AccountingBreak-EvenAnalysis8.3Pricemoreaggressively:-$1,300,000+(0.550)+0.45(-$550,000)=-$1,547,500Hirelobbyist:-$800,000+(0.750)+0.25(-$2,000,000)=-$1,300,000Tandemshouldhirethelobbyist.AnswerstoEnd-of-ChapterProblemsB-938.4SamuelsonInc.hasinvestedinafacilitytoproducecalculators.Thepriceofthemachineis$600,000anditseconomiclifeisfiveyears.Themachineisfullydepreciatedbythestraight-linemethodandwillproduce20,000unitsofcalculatorsinthefirstyear.Thevariableproductioncostperunitofthecalculatoris$15,whilefixedcostsare$900,000.Thecorporatetaxrateforthecompanyis30percent.Whatshouldthesalespriceperunitofthecalculatorbeforthefirmtohaveazeroprofit?8.4Letsalespricebex.Depreciation=$600,000/5=$120,000BEP:($900,000+$120,000)/(x-$15)=20,000x=$668.5Whatistheminimumnumberofunitsthatadistributorofbig-screenTVsmustsellinagivenperiodtobreakeven?Salesprice_$1,500Variablecosts_$1,100Fixedcosts_$120,000Depreciation_$20,000Taxrate_35%8.5Theaccountingbreak-even=(120,000+20,000)/(1,500-1,100)=350units8.6Youarec