Question: ASAP please Part two ALPHA is considering launching a new product. Following a study market, they estimated that the quantities sold of this new product

 ASAP please Part two ALPHA is considering launching a new product.

ASAP please

Part two ALPHA is considering launching a new product. Following a study market, they estimated that the quantities sold of this new product for the next 5 years would be equal to: Year Quantity 1 30 2 40 3 50 4 65 5 60 The price per unit would be equal to 2500 USD. The cost of production would be 800 USD per unit. Launching this product involves buying a machine that costs 300000 USD that will be depreciated over 5 years (straight line). Moreover, this project will lead to a net working capital of 2 months of turnover. 2/ Consider that the return rate is 10%, is this project profitable? 3/ Calculate the Pl and the PP. 2

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!