Construct a new robotic production facility

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Reference no: EM13657962

The Marvel Mfg. Company is considering whether or not to construct a new robotic production facility. The cost of this new facility is $600,000 and it is expected to have a six-year life with annual depreciation expense of $10,000 and no salvage value. Annual sales from the new facility are expected to be 2,000 units with a price of $1,000 per unit. Variable production costs are $600 per unit, and fixed cash expenses are $80,000 Per year.

Reference no: EM13657962

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