Question: I need help to solve this in Excel Excel Master It! Problem Harper Industries is examining a new project to manufacture cell phones. The company
Excel Master It! Problem Harper Industries is examining a new project to manufacture cell phones. The company has examined several alternatives for the manufacturing process. With Process I, the company would manufacture the cell phone entirely in-house. This would require the highest initial cost and fixed costs. Process II would involve subcontracting the manufacture of the electronics. While this choice would reduce the initial cost and fixed costs, it would result in higher variable costs. Page 381 Finally, Process III would subcontract all production, with Harper Industries only completing the final assembly and testing. Below you are given the information for each of the options available to the company. Process II $55,000,000 Process III $36,000,000 Process I $75.000.000 7 450,000 S 345 Initial cost Life (years) Units: Price per unit VC per unit: Fixed costs: Required return; Tix rate: S 137 s 182 S 85 $81.000.000 133 563.000.000 $48.000.000 21 a. Calculate the NPV for each of the three manufacturing processes available to the company b. What are the accounting breakeven. cash break even, and financial break-even points for each manufacturing process? c. What is the DOL. for each manufacturing process Graph the DOL for each manufacturing process on the same graph for different ut sales
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
