Repulse travel Pharmaceuticals - Coursework Example

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Repulse travel Pharmaceuticals

The research analyzes the feasibility of the new product to be launched by Repulse Travel Pharmaceutical. During the analysis, the data have been taken based on the estimate of the research. The financial parameters which have been taken into consideration are the payback period, Net Present Value analysis, and Sensitivity analysis. The result of the payback period reveals that the product will take a period of 3.5 years to generate the total amount invested by the organization in its implementation. Considering the total lifetime of the project to be 5 years as decided by the company, the time period of 3.5 years seems predominantly long. However further studies were conducted and the result of the discounted cash flow analysis, involving NPV suggested that the project has a positive result and is quite viable to be implemented. In the sensitivity analysis factors of demand and the selling price was manipulated to observe the change in NPV under each case. The results show that the decrease in demand or the selling price of the product will put the product in danger. However it is suggested that the organization can implement the product if they can maintain a constant demand of the product and they should be specific in not decreasing the unit selling price below 10 percent from the original value of 7, as found in the sensitivity analysis. Further the organization must consider a thorough market analysis to understand how the product will perform in the market after a comparative analysis of the competitors. ...
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The paper presents the current financial status of the organization, the environmental factors and the profitability which can arise from the product during its lifetime. The study analyzes business issues which may impact the decision during the acceptability of the project. …
Author : eldredwindler

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