The market volume for widgets is increasing by 15% per year from current profits of $200,000. Investing
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The market volume for widgets is increasing by 15% per year from current profits of $200,000. Investing in a design change will allow the profit per widget to stay steady; otherwise they will drop 3% per year. What is the present worth of the savings over the next 5 years? Ten years? The interest rate is 10%.
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Year 200000 15 Potential Lost Profit 3 Incremental Cash Flow B 1 C PW 10 1 200000 ...View the full answer
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