Search & Filtering
1) How much money would you need to deposit into a bank account today at 6% per year in order to be able not to work and be able to withdraw $7,000 at the end of each year for the following 15 years? (2 Points)
Xis considering purchasing a new piece of heavy machinery for $18.50 million. The machinery will be depreciated to zero book value over10 years using the straight-line depreciation method but is expectedto have a residual market value (selling price) at the end of the 10 years equal to $0.90 million. During the first year the machinery is expected to increase the company’s revenues by $1.70 million and, in addition, enable the company to save $1.50 million in employee salaries. Both of these numbers are to remain constant for the rest of themachinery’s useful life. The incometax rate is 18%; the company will use 80% equity and 20% debt to finance to investment; the risk-free rate in the country is 2.90%, the company’s beta has been estimated 1.10, and the market risk premium is 4.90% while cost of debt (before tax) is 3.50%.
a)Estimate the project’s cash flows. (4 Points)
b)Estimate the project’s WACC. (2 Points)
c)Estimate the project’s NPV. (1 Point)
d) Estimate the project’s IRR. (1 Point)
5.1 RESEARCH the concept of ‘direct selling’ and WRITE a summary covering the following:
5.1.1 The factors related to successfully developing, establishing and maintaining direct sales contacts between the buyer and the seller;
5.1.2 The factors related to organisation structure and method of operation of direct selling organisations;
The factors related to sales team organisation, training, motivation and incentives for direct selling organisations
DISCUSS the relevance and responsiveness of direct sales for the banking environment (consider factors such as identification and qualification of prospective buyers, sales preparation, presentation, confirmation, follow-up and identification of further business opportunities).
IDENTIFY at least two different direct sales techniques and EXPLAIN why these are better suited to different circumstances.
Why should the competitive environment be considered when evaluating personal selling strategies?
Discuss the importance of adapting direct selling techniques.
Discuss the importance of assessing the suitability of direct selling opportunities
Identify and explain two direct selling techniques.
Identify factors that impact establishing and maintaining direct sales contacts
