The number of units of the new product expected

Assignment Help Business Management

Reference no: EM13886121

The project has 8 years' life. This project requires initial investment of $300 million to construct building and purchase equipment, and $20 million for shipping & installation fee. The fixed assets fall in the 7-year MACRS class. The salvage value of the fixed assets is $15 million. The number of units of the new product expected to be sold in the first year is 2,000,000 and the expected annual growth rate is 10%. The sales price is $300 per unit and the variable cost is $220 per unit in the first year, but they should be adjusted accordingly based on the estimated annualized inflation rate of 2.8%. The required net operating working capital (NOWC) is 12% of sales

Reference no: EM13886121

Questions Cloud

Excess pure oxygen and the flame temperature : Carbon monoxide (CO) is burnt in presence of 200% excess pure oxygen and the flame temperature achieved is 2298 K. The inlet streams are at 25 °C.

Assignemnt-debunking gender misconceptions : Assignemnt-Debunking Gender Misconceptions. Consider that there are many gender misconceptions in education. For example, some people believe that boys are more suited for and more interested in math and science

Write about disney company : Write about Disney Company. First of all, provide a financial analysis of the company from 3-5 year history from now (in spreadsheet form). Then, write about operational analysis (strategy and quality control system). Please cite your source.

Find the minimum pressure on the cylinder : A uniform flow V ¼ 10i m=s is superimposed on a doublet with strength 40 m3=s. Find - The radius of the cylinder that is formed.

The number of units of the new product expected : The project has 8 years' life. This project requires initial investment of $300 million to construct building and purchase equipment, and $20 million for shipping & installation fee. The fixed assets fall in the 7-year MACRS class. The salvage value ..

Audit strategy for each engagement : The approach taken in each audit is briefly described below:

The set of facts and tables : The correct answers are based on the set of facts and tables provided below. All the data you need to perform the necessary calculations are contained in the tables following the three paragraphs below. Show all your calculations so you can receive p..

What is the break-even point : What is the break-even point? In other words, how many meals, at $7.00, would need to be sold before you start making a profit?

Determine the length and thickness of the oval : A uniform flow V ¼ 20i m=s is superimposed on a source of strength 20p m2/s and a sink of equal strength located at (22 m, 0) and (2 m, 0), respectively. The resulting body formed by the appropriate streamline is a Rankine oval. Determine the leng..

User Account

All Pages