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How many oxygenators do they need to sell per year

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Problem 1: In response to COVID-19, OxyGenZ, Inc. is producing medical oxygenators for hospitals. The capital expense in Year 0 is $50,000,000. The annual operating expenses start at $25,000,000 in Year 1 and decline by 10% each year. How many oxygenators do they need to sell per year if hospitals pay $15,000 per unit and the company has $450 in material costs per unit? Assume a project life of 5 years and a MARR of 10%

Reference no: EM132775800

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