Please help with this question! The Lavender Toy Company has been a family run b
ID: 2477526 • Letter: P
Question
Please help with this question!
The Lavender Toy Company has been a family run business for the last 25 years. It is well recognized in the state of Michigan for selling educational related toys specifically for children ages 4 through 8. Once a year, Lavender Toy goes through an extensive analysis as to which new toy they should promote for the upcoming year. They only have room to manufacture or new toy because they will drop the poorest selling toy, automatically, from their product line. Colleen, Kasey, Elvira June, Market Experts employed by Lavender Toy, have prepared the following information regarding their suggestions as to which toy should be promoted during upcoming year. Using your new 3 took for capital budgeting, rank these investment opportunities 1 = highest, 2 = middle, 3 = lowest. Show all computations in good form. Support your rankings with sound capital budgeting analysis.Explanation / Answer
Answer to the Question
Working of NPV
RANKING Tools BESTY BLOCK KNUTE NUMBERS DONNA DOLLIE NPV 46,468 75,768 (13,266) Ranking (NPV) 2.00 1.00 3.00 PI ( PV of Future Cash Flow/Initial Investment) 1.52 1.70 0.83 Ranking (PI) 2.00 1.00 3.00