FINS1613 Lecture Notes - Lecture 8: Chicken Coop, University Of New South Wales, Hush Money
Document Summary
The sydney roosters are considering selling of cially licensed actual roosters, which will be genetically enhanced to sing roosterman on game day. The biotech research ensures that the project will have signi cant upfront costs as the commercial need for a singing chicken has never been recognized before. However, the project will later generate positive cash ows as each supporter faithfully adopts his or her own rooster. Details to compute cash ows are given below: the team expects to sell 20,000 roosters in the rst year. Sales are expected to grow by 40% each year until the third year. Rooster will sell for : variable costs, such as chicken coop maintenance and feed costs, are expected to be per each rooster sold, the team will hire: i) ii)
