Question: enter all excel formulas Mark is expanding a new product to help with in the construction market. His marketing manager thinks the company can sell

enter all excel formulas
Mark is expanding a new product to help with in the construction market. His marketing manager thinks the company can sell 120,000 units per year at a price of $3.75 each for 3 years, after which the product will be obsolete. The purchase price of the required equipment, including shipping and installation costs, is $150,000, and the equipment is eligible for 100% bonus depreciation at the time of purchase. Current assets (receivables and inventories) would increase by $45,000, while curent liabilities (accounts payableand accruals) would rise by $20,000. Variable cost per unit is $1.95, and fixed costs would be $70,000 per year. When production ceases after 3 years, the equipment should have a market value of $15,000.Marks tax rate is 25%, and it usesa 10% WACC for average-risk projects.
SUBMIT ALL EXCEL FORMULAS
 enter all excel formulas Mark is expanding a new product to

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