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Mkm704 Zxx Assignment 2 Lastname Firstname

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Subject
Finance
School
Seneca college
Type
Homework
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STUDENTS NAME
STUDENT NUMBER
EMAIL ADDRESS

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Part I
Base case v12
Cumulative cash flows =$ 21006025
NPV = (1.16) ^ (-5) x 21,006,025 = $10,001,241.9
IRR = 16%
Innovation case v13, scenario
I recommend v 13 since it has a highly cumulative cash flow
Cumulative cash flow = $ 24,833,318
NPV = (1.16) ^ (-5) x 24,833,318=$11,823,465.92
IRR = 16%
Payback period = 8.2/11.823 = 0.69years
Discounted payback period = ln (1/1-0.96) / ln (1.16) = 1.171/0.1484 =7.89years
Part II (Driver analysis for scenario 1)
V12
Positive drivers listing reduction of fee paid to logistics. it decreases each year.
Negative Drivers listings reduction of impressions each year. Rate of successful clicks is
relatively low compared to v13
Most important negative driver rate of successful clicks. Its relatively low and it has a
shrinkage rate thus low sale.

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STUDENTS NAME STUDENT NUMBER EMAIL ADDRESS Part I Base case v12 Cumulative cash flows =$ 21006025 NPV = (1.16) ^ (-5) x 21,006,025 = $10,001,241.9 IRR = 16% Innovation case – v13, scenario I recommend v 13 since it has a highly cumulative cash flow Cumulative cash flow = $ 24,833,318 NPV = (1.16) ^ (-5) x 24,833,318=$11,823,465.92 IRR = 16% Payback period = 8.2/11.823 = 0.69years Discounted payback period = ln (1/1-0.96) / ln (1.16) = 1.171/0.1484 =7.89years Part II (Driver analysis for scenario 1) V12 Positive drivers listing – reduction of fee paid to logistics. it decreases each year. Negative Drivers listings – reduction of impressions each year. Rate of successful clicks is relatively low compared to v13 Most important negative driver – rate of successful clicks. Its relatively low and it has a shrinkage rate thus low sale. Innovation case – v13 Positive drivers listin ...
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