2 A B C D E F G H I J 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

2 a b c d e f g h i j 32 33 34 35 36 37 38 39 40 41

This preview shows page 176 - 186 out of 192 pages.

2 A B C D E F G H I J 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48
Image of page 176
Unit10b Page 177 Enhanced E-Reader: Cash Flow Statement Year: 1 2 3 4 5 6 Relevant benefits: ($Millions) Incremental value, New E-Reader $4.00 $7.00 $9.00 $14.00 $19.00 $22.00 Relevant costs: Lost value, Current Product $6.00 $6.00 $6.00 $6.00 $6.00 $7.00 Constraints Advertising $2.00 $1.00 $0.50 $0.50 $0.50 $0.50 New product management $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 Market research expenses $0.50 $0.00 $0.00 $0.00 $0.00 $0.00 Incremental maintenance $0.00 $0.50 $0.50 $0.50 $0.50 $0.50 Total costs $9.50 $8.50 $8.00 $8.00 $8.00 $9.00 EBITDA ($5.50) ($1.50) $1.00 $6.00 $11.00 $13.00 Less: Depreciation $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 Income before taxes ($6.50) ($2.50) $0.00 $5.00 $10.00 $12.00 Less: Taxes @ 36% ($2.34) ($0.90) $0.00 $1.80 $3.60 $4.32 Net income ($4.16) ($1.60) $0.00 $3.20 $6.40 $7.68 Plus: Depreciation $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 Minus: Investment $10.00 $0.00 $0.00 $0.00 $0.00 $0.00 Net Cash Flow ($13.16) ($0.60) $1.00 $4.20 $7.40 $8.68 Cumulative Net Cash Flow ($13.16) ($13.76) ($12.76) ($8.56) ($1.16) $7.52 Undiscounted payback period: Discount Rate: 0.1 Discounted Cash Flow ($11.96) ($0.50) $0.75 $2.87 $4.59 $4.90 K L M N O P Q R 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Image of page 177
Unit10b Page 178 Cumulative Discounted Cash Flow Err:504 Err:504 Err:504 Err:504 Err:504 Err:504 Discounted payback period: 5.87 ($11.96) ($12.46) ($11.71) ($8.84) ($4.24) $0.65 K L M N O P Q R 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48
Image of page 178
1 How is standard deviation used as a business analytic? 2 Describe the purposes of the Excel's standard deviation functions, STDEV.S & STDEV.P. 3 Define "confidence interval" and how it relates to business analytics. 4 Compute the 95% confidence interval for the following data. See instructions in the comment field. Passersby
Image of page 179
544 468 399 759 526 212 256 456 553 259 469 366 197 178 5 The following are data showing the advertising budget and unit sales for a company. Advertising Budget Unit Sales $3,500 16,523 $10,073 6,305 $11,825 1,769 $33,550 30,570 $37,200 7,698 $55,400 9,554 $55,565 54,154 $66,501 54,450 $71,000 47,800 $82,107 74,598 $83,100 25,257 $90,496 80,608 $100,000 40,800 $102,100 63,200 $132,222 69,675 $136,297 98,715 $139,114 75,886 $165,575 83,360 6 Given the strong linear relationship between the advertising budget and unit sales in the previous exa A for Yes; B for No. 7 Use Excel's regression tool to perform a regression analysis for the budget and sales data in the above Place the results In B97. Create an X-Y Scatter Diagram (Scatterplot) for the data. Insert a trend line. Also include the regressio
Image of page 180
8 Using the TREND function as an ARRAY function, for the data in the above item predict the unit sales f $200,000 $210,000 9 Use LINEST to perform a regression analysis on the budget and unit data above. Treat unit sales as the 10 The following adds additional data (Sales Price) to the dataset the previous problems used. Treating Advertising Budget and Sales Price as independent variables, use the Regression tool in Data Specify F137 as the Output Range. Advertising Budget Sales Price Unit Sales $3,500 $88 16,523 $10,073 $110 6,305 $11,825 $85 1,769 $33,550 $28 30,570 $37,200 $101 7,698 $55,400 $71 9,554 $55,565 $7 54,154 $66,501 $82 54,450 $71,000 $62 47,800 $82,107 $24 74,598 $83,100 $91 25,257 $90,496 $40 80,608 $100,000 $45 40,800 $102,100 $21 63,200
Image of page 181
$132,222 $40 69,675 $136,297 $8 98,715 $139,114 $63 75,886 $165,575 $5 83,360 11 Are both predictors statistically significant? 12 What is the Multiple Correlation? 13 Is the Multiple Correlation statistically significant?
Image of page 182
Image of page 183
Upper bound Lower bound CONFIDENCE.T Upper bound Lower bound ample, can it be said that the budgeted dollars caused the sales? e dataset. Treat the advertising budget as the independent variable. on equation and the R 2 on the chart. Place the scatterplot in the box.
Image of page 184
for the following advertising budget dollar amounts.
Image of page 185
Image of page 186

You've reached the end of your free preview.

Want to read all 192 pages?

  • Fall '09
  • ELLIOT
  • Threesome

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture