Develop spread sheet model-net present value

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Reference no: EM132037497

For a New product, sales volume in the first year is estimated to be 80,000 units and is projected to grow at a rate of 4% per year. the selling price is $12 and will increase by $0.50 each year. Per -unit variable costs are $3, and annual fixed costs are $400000. Per-unit costs are expected to increase 5% per year. Fixed costs are expected to increase 8% per year. develop a spread sheet model to calculate the net present value of profit over a 3- year period, assuming a 4% discount rate.

Reference no: EM132037497

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