Raw material cost or changes in selling price

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The decision of whether to release the new product into production requires answers to the following questions: What average selling price of the ?nished product would be required to yield a 20% after-tax rate of return? Is the NPV more sensitive to changes in raw material cost or changes in selling price? Is the IRR more sensitive to changes in raw material cost or changes in selling price? Do variations in the machine's cost have a signi?cant impact on the IRR or NPV?

Reference no: EM132999822

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