= Homework: Chapter 12 Homework Question 5, Problem 12-... Part 3 of 7 > HW Score: 50%, 5 of 10 points O Points: 0 of 2 Save Manitowoc Crane (B). Manitowoc Crane (U.S.) exports heavy crane equipment to several Chinese dock facilities. Sales are currently 10,000 units per year at the yuan equivalent of IVICI UIIVUL VUULU Gross profits $ 33,913,000 $ 37,982,560 $ 42,540,467 $ 47,644,374 Calculate the gross profits for years 5 through 8 in the following table: (Round to the nearest dollar.) Case 1 Year 5 Year 6 Year 7 Year 8 15,735 17,623 19,738 22,107 Sales volume (units) Sales price per unit 21,391.3 $ 21,391.3 21,391.3 $ 336,592,105 21,391.3 472,897,469 Total sales revenue 376,978,880 422,221,479 Direct cost per unit 18,000 $ 18,000 $ 317,214,000 18,000 $ 355,284,000 18,000 397,926,000 Total direct costs 283,230,000 Gross profits $ 53,362,105 $ 59,764,880 $ 66,937,479 $ 74,971,469 If Manitowoc's weighted average cost of capital is 10%, what is the cumulative present value of the firm's gross margin? $ (Round to the nearest dollar.) = Homework: Chapter 12 Homework Question 5, Problem 12-... Part 3 of 7 HW Score: 50%, 5 of 10 points O Points: 0 of 2 Save Manitowoc Crane (B). Manitowoc Crane (U.S.) exports heavy crane equipment to several Chinese dock facilities. Sales are currently 10,000 units per year at the yuan equivalent of $24,000 each. The Chinese yuan (renminbi) has been trading at Yuan8.20/$, but a Hong Kong advisory service predicts the renminbi will drop in value next week to Yuan9.20/$, after which it will remain unchanged for at least a decade. Accepting this forecast as given, Manitowoc Crane faces a pricing decision in the face of the impending devaluation. It may either (1) maintain the same yuan price and in effect sell for fewer dollars, in which case Chinese volume will not change; or (2) maintain the same dollar price, raise the yuan price in China to offset the devaluation, Anni J..........1..-I 700 -Fi. In I.... CASE 1 If Manitowoc Crane maintains the same yuan price and in effect sells for fewer dollars, the annual sales price per unit is equal to ($24,000 x Yuan8.20/$) - Yuan9.20/$ = $21,391.3. The direct cost per unit is 75% of the sales, or $24,000 x 0.75 = $18,000. Calculate the gross profits for years 1 through 4 in the following table: (Round to the nearest dollar.) Case 1 Year 1 Year 2 Year 3 Year 4 10,000 11,200 12,544 14,049 21,391.3 Sales volume (units) Sales price per unit Total sales revenue Direct cost per unit 21,391.3 $ 213,913,000 21,391.3 $ 239,582,560 21,391.3 $ 268,332,467 300,526,374 Total direct costs $ 18,000 $ 18,000 $ 18,000 $ 18,000 180,000,000 201,600,000 225,792,000 252,882,000 $ 33,913,000 $ 37,982,560 $ 42,540,467 $ 47,644,374 Gross profits