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How much to charge for the new greencar model

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Reference no: EM131426968

Ecostar needs to determine how much to charge for the new greencar model. Developing, producing, and marketing the greenCar costs Ecostar $100,000,000 per year for three years before it goes to market. Once it goes on the market, Ecostar will not spend any additional money on the greenCar. Ecostar would like to make their investment in greenCar back 3 years after it goes on the market. If ecostar anticipates selling 25,000 greencars per year for those 3 years, how much do they need to charge per greencar to breakeven? Assume a discount rate of 10%.

Reference no: EM131426968

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