Business Focus B2C B2B Total A survey of B2B marketers (marketers that focus primarily on attracting businesses) and B2C marketers (marketers that primarily target consumers) was based on 1000 B2B….
ABC Company is working to launch a new product.
ABC Company is working to launch a new product. The investment amount for the project is $ 15 million. The facilities including new equipment could be used for 15 years. The scrap value is assumed to be zero and straight-line depreciation is assumed. Annual fixed costs are predicted to be as $ 3 million and variable costs as approximately 70% of the sales revenue. Tax rate is 30% and opportunity cost of investment is 12%. Perform a sensitivity analysis to see how the profitability of the project will be affected by the annual sales volume Calculate the NPV values for two cases: high demand (revenue of $24 million) and low demand (revenue of $18 million).