Projected annual sales of a LED keychain are projected to be

25,000 USD the first year and increase by

10,000 USD per year until

55,000 USD are sold during the fourth year. Sales are then predicted to decrease by

5,000 USD per year in the fifth year and each year thereafter until

25,000 USD are sold in the tenth year. Firm is going to purchase manufacturing equipment costing

100,000 USD with an estimated salvage value of

20,000 USD at the end of 10 years. The variable manufacturing cost per unit is

0.8 USD. If the interest rate is

9%, what is the Present Equivalent cost for a 10-year production period?

Answer rating: 100% (QA)

to calculate the Present Equivalent PE cost for the 10year production period 1 Calculate Annual Cash ... View the full answer