Comparison of alternatives using npv analysis

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Reference no: EM13303397

Question 1 - yes, if matieral prices go up, this makes the model 5200 less attractive since the matieral costs per unit are currently .40 vs .38 on model 2600.

Question 3 - If the price of labor goes up by 25% this makes the model 5200 even more attractive since it currently has a significantly lower labor cost per unit than model 2600.


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Reference no: EM13303397

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