Determine the eaw of the product

Reference no: EM132171383

Question: Construct a spider plot if the annual revenues may vary by -40% to +20%, the annual expenses by -20% to +30%, and the initial investment by ±10%.

Problem: We-Clean-U, Inc., expects to receive $42,000 each year for 15 years from the sale of its newest soap, On Guard. There will be an initial investment in new equipment of $150,000. The expenses of manufacturing and selling the soap will be $17,500 per year. Using MACRS depreciation, a marginal tax rate of 42%, and an interest rate of 12%, determine the EAW of the product.

Reference no: EM132171383

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