Question: Im having trouble figuring out the excel formulas so it would be very appreciated if the formlulas were included in the solution! You are manager
You are manager of a manufacturing business. Business is going very well and one production line is at full capacty. You want to double the size of the production line. Engineering has estimated the cost and time required. It can be accomplished without effecting the existisg production. The timing of the cash flows for the facility is as follows. The current cost of capital is b\% APR. What is the total cont of the project? You entimale that sales for the first year will be at 30% of capacity and increase to 60% in yoar 2.5ales after year 2 are estamased at ass of capaciry The current production line generates 5900,000 in net pefte. The pioft will be propoctional to the percent capocity ctilizet. The egerpany demanda a pays interest on the cacital for the entre ten years
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