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    2 Accounting Graded Q

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    imshubham200496_5557
    Mondelez plans to launch a premium chocolate brand called Gazelle that will be sold only in specialty boutiques located in malls and hotels. Manufacturing and packaging Gazelle products will require special units, resulting in high upfront costs for this expensive investment. Mondelez also plans a major marketing campaign to support Gazelle's launch. The brand manager projects cash outflows for the first 5 years will be highest in year 1 at 100 and decline, while cash inflows will be lowest in year 1 at 30 and increase each year, reaching 150 in year 5.

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    2 Accounting Graded Q

    Uploaded by

    imshubham200496_5557
    130 views21 pages
    Mondelez plans to launch a premium chocolate brand called Gazelle that will be sold only in specialty boutiques located in malls and hotels. Manufacturing and packaging Gazelle products will require special units, resulting in high upfront costs for this expensive investment. Mondelez also plans a major marketing campaign to support Gazelle's launch. The brand manager projects cash outflows for the first 5 years will be highest in year 1 at 100 and decline, while cash inflows will be lowest in year 1 at 30 and increase each year, reaching 150 in year 5.

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    2 Accounting Graded Q

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    Mondelez plans to launch a premium chocolate brand called Gazelle that will be sold only in specialty boutiques located in malls and hotels. Manufacturing and packaging Gazelle products will require special units, resulting in high upfront costs for this expensive investment. Mondelez also plans a major marketing campaign to support Gazelle's launch. The brand manager projects cash outflows for the first 5 years will be highest in year 1 at 100 and decline, while cash inflows will be lowest in year 1 at 30 and increase each year, reaching 150 in year 5.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    130 views21 pages

    2 Accounting Graded Q

    Uploaded by

    imshubham200496_5557
    Mondelez plans to launch a premium chocolate brand called Gazelle that will be sold only in specialty boutiques located in malls and hotels. Manufacturing and packaging Gazelle products will require special units, resulting in high upfront costs for this expensive investment. Mondelez also plans a major marketing campaign to support Gazelle's launch. The brand manager projects cash outflows for the first 5 years will be highest in year 1 at 100 and decline, while cash inflows will be lowest in year 1 at 30 and increase each year, reaching 150 in year 5.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 21

    Graded Assessments

    Note: There are additional practice questions in the resources section. Please use them to boost
    your learning and concept clarity.

    Please answer the following questions carefully. They are graded.

    Comprehension
    Mondelez, a manufacturer of confectionery products under the Cadbury trademark, plans to launch
    a range of premium chocolate boxes under the brand name ‘Gazelle’. These boxes will be sold
    only in special chocolate boutiques set up in malls and hotels. Manufacturing and packaging the
    product would require special units, and thus, this would be an expensive investment. Also,
    Mondelez plans to support the launch of Gazelle with a high decibel marketing campaign.

    The brand manager of Gazelle projects the following cash flows for the first five years (all figures
    in ? lakh):

    Year 1 2 3 4 5
    Cash Outflow 100 80 50 20 20
    Cash Inflow 30 50 100 120 150

    Assume that there are no expenses in Year 0.

    For questions 1–3 related to this comprehension, assume a WACC of 8%. It is strongly advised
    you use a spreadsheet to solve the questions.

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