Q2.

 A  
A  LITTLE  LEAGUER  
 
  YEAR  1   YEAR  2   YEAR  3  
LITTLE  LEAGUERS        
HOURLY  REVENUES   6,500   6,500   6,500  
HOURLY  COSTS   6,000   6,000   6,000  
HOURLY  MARGIN   500   500   500  
NO.  OF  ANNUAL  HOURS   10   10   10  
ANNUAL  MARGIN     5,000   5,000   5,000  
SURVIVAL  RATE   100%   75%   56.3%  
CUSTOMER  ACQUISTION  COST   10,000      
ANNUAL  PROFIT   (5,000)   3,750   2,813  
NPV  OF  ANNUAL  PROFIT   (5,000)   3,409   2,324  
CUMULATIVE  PROFIT  TILL  DATE   (5,000)   (1,250)   1,563  
NPV  OF  CUMULATIVE  PROFIT  TILL   (5,000)   (1,591)   733  
DATE  
 
 
Q2.  B  
A  SUMMER  SLUGGER  
 
  YEAR  1   YEAR  2   YEAR  3  
SUMMER  SLUGGER        
HOURLY  REVENUES   3,000   3,000   3,000  
HOURLY  COSTS   1,500   1,500   1,500  
HOURLY  MARGINS   1,500   1,500   1,500  
NO.  OF  ANNUAL  HOURS   4   4   4  
ANNUAL  MARGIN   6,000   6,000   6,000  
SURVIVAL  RATE   100%   50%   25%  
CUSTOMER  ACQUISITION  COST   10,000      
ANNUAL  PROFIT   (4,000)   3,000   1,500  
NPV  OF  ANNUAL  PROFIT   (4,000)   2727   1,240  
CUMULATIVE  PROFIT  TILL  DATE   (4,000)   (1,000)   500  
NPV  OF  CUMULATIVE  PROFIT  TILL   (4,000)   (1,273)   (33)  
DATE  
 
 
 
 
 
 
 
 
Q2  C  
AN  ELITE  BALLPLAYER  (PRINT  AD)  
 
 
  YEAR  1   YEAR  2   YEAR  3   YEAR  4  
ELITE  BALLPLAYERS          
HOURLY  REVENUES   7,500   7,500   7,500   7,500  
HOURLY  COSTS   6,000   6,000   6,000   6,000  
HOURLY  MARGINS   1,500   1,500   1,500   1,500  
NO.  OF  ANNUAL  HOURS   20   20   20   20  
ANNUAL  MARGIN   30,000   30,000   30,000   30,000  
SURVIVAL  RATE   100%   60%   36%   21.6%  
CUSTOMER  ACQUISITION   60,000        
COST  
ANNUAL  PROFIT   (30,000)   18,000   10,800   6,480  
NPV  OF  ANNUAL  PROFIT   (30,000)   16,364   8,926   4,869  
CUMULATIVE  PROFIT  TILL   (30,000)   (12,000)   (1,200)   5,280  
DATE  
NPV  OF  CUMULATIVE   (30,000)   (13,636)   (4,711)   158  
PROFIT  TILL  DATE  

 
 
 
 
Q2.  D  
AN  ELITE  BALLPLAYER  (PARTY)  
 
 
  YEAR  1   YEAR  2   YEAR  3  
ELITE  BALLPLAYERS        
HOURLY  REVENUES   7,500   7,500   7,500  
HOURLY  COSTS   6,000   6,000   6,000  
HOURLY  MARGINS   1,500   1,500   1,500  
NO.  OF  ANNUAL  HOURS   20   20   20  
ANNUAL  MARGIN   30,000   30,000   30,000  
SURVIVAL  RATE   100%   60%   36%  
CUSTOMER  ACQUISITION  COST   50,000      
ANNUAL  PROFIT   (20,000)   18,000   10,800  
NPV  OF  ANNUAL  PROFIT   (20,000)   16,364   8,926  
CUMULATIVE  PROFIT  TILL  DATE   (20,000)   (2,000)   8,800  
NPV  OF  CUMULATIVE  PROFIT  TILL   (20,000)   (3,636)   5,289  
DATE  
 
  
 
Q2.  E  
AN  ENTERTAINMENT  SEEKER  
 
  YEAR  1   YEAR  2  
ENTERTAINMENT  SEEKER      
HOURLY  REVENUES   4,000   4,000  
HOURLY  COSTS   3,000   3,000  
HOURLY  MARGINS   1,000   1,000  
NO.  OF  ANNUAL  HOURS   2   2  
ANNUAL  MARGIN   1,500   1,500  
SURVIVAL  RATE   100%   35%  
CUSTOMER  ACQUISITION  COST   2,000    
ANNUAL  PROFIT   (500)   525  
NPV  OF  ANNUAL  PROFIT   (500)   477  
CUMULATIVE  PROFIT  TILL  DATE   (500)   25  
NPV  OF  CUMULATIVE  PROFIT  TILL  DATE   (500)   (23)  
 
 
 
ALL  AMOUNTS  IS  YEN.