There is an urgent need for a case study on the role of financial management in enterprises.

Scoff TV Co., Ltd. is a small company specializing in making cooking programs for ITV. A producer who works for scoff TV Co., Ltd. has developed a new program form: judging the best parts of our existing programs on TV. Brunell Consulting Company made a feasibility study, and the cost was about100000. The following is the variable cost of making a weekly episode provided by brunell Company. Once a week, every 10 episode is an episode.

Variable cost days daily cost

Photography 6 ~ 250

Sound 6 ~ 250

6-3,000 staff

Edit composition 1 ~ 1, 000

Moderator 1 ~ 2000

Animation 1 ~ 1 000

2 Manufacturer 6% 4000

The following is the fixed cost of making a series within 0 years provided by brunell Company:

Water fee: 1.2 million, electricity fee: 3,000, gas fee: 3,000, insurance fee: 1.2 million, maintenance fee: 1.2 million.

The following equipment and devices will be purchased in 2000:

Materials and equipment150,000, music materials 500,000, letter devices100,000, kitchen utensils 30,000, and audio equipment 50,000.

These investments made in 0 years will be depreciated by the straight-line method in the first 5 years. After five years, these equipment will be sold at 10% of the original price, with residual value. Brunell also suggested that Scoff rent a factory to shoot at the price of 10 ~ 50,000 per year. Pay at the beginning of each year. Every new series will have an advertising budget of 1 year-200,000. This advertising expenditure is at the beginning of each year.

It is planned to produce five new series, one each year. Every series will be replayed on ITV next year, and then every series will be replayed on UKTV in two years. The following table shows the production and playback plans:

This new series will be rebroadcast on ITV, BTV and BTV.

1 series 1

2 series 2 series 1

3 series 3 series 2 series 1

4 series 4 series 3 series 2 series 1

5 series 5 series 4 series 3 series 2

6 series 5 series 4 series 3

7 series 5 series 4

8 series 5

The above fees are all 0 years. In each of these eight years, the inflation rate of variable cost, fixed cost, rent and advertising is 5% (1-8 years). Scoff's after-tax beta coefficient is 1.5, and the consultant company suggests that the risk-free rate of return in the next eight years is 5%, and the after-tax market necessary rate of return is 15%, which is reasonable.

Brunell Consulting also suggests setting the sales price according to the following system. The new price will be set at twice the variable cost this year. The first rebroadcast price of the second year 1 series will be 25% of the price of the new series in the second year. The second rebroadcast price of 1 series in the third year is 20% of the new series in the third year. The third rebroadcast price of the fourth-year series 1 will be 15% of the new fourth-year series. In addition, the inflation rate in the sixth, seventh and eighth years was 5%. The price of the first replay of series 5 in the sixth year = the price of the new series in the fifth year X 5% inflation rate X 25%% Note: the price of the new series = variable cost X 2.

The first replay, second replay and third replay of the new series.

1 X 2

2 X 2 X 25%

3 X 2 X 25% X 20%

4 X 2 X 25% X 20% X 15%

5 X 2 X 25% X 20% X 15%

6 X 25% X 20% X 15%

7 X 20% X 15%

8 X 15%

The advertising fee for the first replay of each series will be 20% of the advertising budget of the new series. For the second and third rebroadcasts of each series, the advertising expenses will be 15% and 10% of the advertising budget of the new series. Inflation in every case must be considered. The corporate tax rate for the first year to the fifth year is 20%.

A. calculate the cash flow and net present value (NPV) of the project. Is the project accepted?

B. Evaluate the internal rate of return (IRR), payback period, discounted payback period and profitability indicators of the project.

C. How important is the sales volume of replay to the feasibility of this plan?

D. What are the advantages and disadvantages of investing with discounted present cash flows?