COMMERCE 3MC3 Lecture 3: 3MC3 Pre-class #3.docx

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 3MC3
• Professor: Mc Clelland

Document Summary

Please bring 2 completed copies (point form is fine] to the thursday or friday class. You may be asked to hand-in one of the copies. Use the remaining copy to help you participate in class. Please pick/identify one path and briefly summarize your two most important rationale points for your recommendation. I feel stagreen such launch into the commercial market. Ts = 180 000/10 x 22. 50 x 12 = 4 860 000. Vc = 4 860 000 x . 52 = 2 527 200. Fc = 700 000 (rental) + 80 200 (g&a) + 20 650 (r&d) + 12 350 (misc) + 426 000 (dist) + 555. Salaries = 200 000 (4 partners, can forgo 1st yr) + 500 000 (20 sales reps) = 700 000. Ni = 4 860 000 - 2 527 200 1 944 400 700 000 = -311 600; -111 600 without partners salaries. Vc = 6 480 000 x . 4 = 2 592 000.