Considering the introduction of new product line

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A computer keyboard manufacturing company is considering the introduction of a new product line. The initial investment required for this project is $500.000. and annual maintenance costs are anticipated to be $35,000. Annual operating costs will be directly proportional to the level of production at $7.5 per unit, and each unit of product can be sold for $50. Based on historical experience. the annual production level for this product is 4.000 units. We also know the MARR value used by the company is 15% and project has a life of 5 years, no salvage value left in the end.

Use PW method and determine if this project is economically attractive?

Reference no: EM131439805

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