This homework uses data in REVIEW HOMEWORK 1 workbook
Question 1. a)Use the data in the applicants tab to compare the percentages of men and women who have email, phone call or letter as their first contact.
b) Show how average ages of men and women vary by industry. In what industry does the greatest difference occur?
c) Use the Analgesics tab and computes the following:
i) The percentage of Anacin sales made in store 103
ii) The percentage of store 102 sales that are Tylenol
Question 2. Use the Cost Benefit worksheet and answer the following questions:
CAPITAL BUDGETING
Your task is to decide whether the project outlined below is worthwhile for your company over a 10 year period. You are considering a project which would require an investment of $8 million. Here are the specifics:
Investment details
Investment amount: $8 million
Revenue growth over the 10 year period: Revenue is expected to be $1,000,000 in the first year [2016] and to increase 5.5% each year over the first 5 years of the 10 year period and then an additional year over year increase of 0.1% for each year over the next 5 years
Costs are estimated to be $250,000 in the first year and to increase 4% each year over the first 5 years and then increase to 4.25% over the second 5 years of the 10 year period
You are not planning to borrow money since you have a lot of cash available in the company.
Answer the following questions:
1 Can you make a profit from this investment?
2. Under what conditions [if any] would you make a profit? Under what conditions would you make a loss?
Please show numbers and calculations when answering these questions.
