Milo Limited, South Africa, is a specialist manufacturer of security doors and gates. In seeking to expand its operations, it could acquire a Dutch subsidiary company, Nabby Guard, or set up a new division in its home market. The relevant figures for these two options are: Set up new division at homeRandCost of setting up premises25 000 000 Cost of machinery14 000 000Annual sales41 500 000Annual variable cost13 000 000Head office expenses o The Head office expense includes existing head office expense of R1 000 000 5 000 000Depreciation: machinery 10% on cost annually3 900 000 AcquisitionEuroAcquire shares from existing shareholders13 000 000 Redundancy costs7 000 000Annual Sales27 000 000Annual variable costs15 000 000Annual fixed costs5 000 000Consultants fees6 300 500 Additional information:The project is expected to last for 10Milo Limited, current cost of capital is 13%.The Dutch inflation is expected to be below the South African inflation by 2% per year, throughout the life of this investment.The current exchange spot rate is R20 to the Euro (€).Required:1.Make all necessary calculations for the two options.2. Advise Milo Limited on the viability of these two opportunities

The project is expected to last for 10 Milo Limited, current cost of capital is 13%. The Dutch inflation is expected to be below the South African inflation by 2% per year, throughout the life of this investment. The current exchange spot rate is R20 to the Euro (€). Required: 1.Make all necessary calculations for the two options. 2. Advise Milo Limited on the viability of these two opportunities

The project is expected to last for 10 Milo Limited, current cost of capital is 13%. The Dutch inflation is expected to be below the South African inflation by 2% per year, throughout the life of this investment. The current exchange spot rate is R20 to the Euro (€). Required: 1.Make all necessary calculations for the two options. 2. Advise Milo Limited on the viability of these two opportunities

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter15: Retailing, Direct Marketing, And Wholesaling

Section15.1: L.l.bean: Open 24/7, Click Or Brick

Problem 2VC

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Alar is a manager at Shoeless Joe's Sports Bar and Grill and was approached by a hockey team asking for sponsorship. Sponsorship would mean purchasing 18 jerseys for the team BUT would see the team visit the restaurant on a regular basis. • The EXPECTED RETURNS for the restaurant from these visits would be Gross Sales of $2,000 per year for an expected five years. (Assume the restaurants profit margin on food/alcohol sales is 40%, so USE NET PROFIT of $800 per year for all calculations). Further, the jerseys would have the Shoeless Joe's logo and act as advertising (a goodwill function in accounting), BUT this is not considered in the calculations. Alar remembers something about CLTV in college and wants to calculate the CLTV using different methods on ONLY the future expected business from the team ($800 per year) (ignore advertising or goodwill from the jerseys). Determine: a) The CLTV of the team for "five years" using the "Easy Method". b) The CLTV of the team using the "Simple…
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bartleby, a Learneo, Inc. business

Set up new division at home	Rand
Cost of setting up premises	25 000 000
Cost of machinery	14 000 000
Annual sales	41 500 000
Annual variable cost	13 000 000
Head office expenses o The Head office expense includes existing head office expense of R1 000 000	5 000 000
Depreciation: machinery 10% on cost annually	3 900 000

Acquisition	Euro
Acquire shares from existing shareholders	13 000 000
Redundancy costs	7 000 000
Annual Sales	27 000 000
Annual variable costs	15 000 000
Annual fixed costs	5 000 000
Consultants fees	6 300 500