ITCE JO-CAPITAL BLOATING ASSIGNMENT Spring 2009 CPITONAL: THIS ASSIGNMENT CAN ALSO BE DONE IN A GROUPOF TWO Dum Dum 13 Jum, 203 1:00 pm Muchin Corporation is comichering the inu al a new proshut to be added in la product mix. They hind you, a room bushes godmain from Mackwan, for conducting the analysis The production line would be wt up in an ungoed mace at the company's min plant. The plant spoon could boy band out to tractor fim at $35,000 per pear. They have in buy new machinery. The approsinus cost of the muchin would be $200 001 with anchor $10,001 in shipping and hurdling changes. It would also cant an additional 1:10130 to imiall he equipment. The ruchionry him in cronnik Ife of 3 yours and would be in CLas B with . CCA muir of 20% The machinery is capecard to have a The new product line would grooms incmarial saks of 1,430 units per your for 3 youm and they on capetied to grow life per year. The cost perunit is milruled in $13 parul: in the first your. Each unit can be sold be $200 in the firm your. The sdes price and ant are both rapecard to irarouse by 2.4% par your due in inflation. The fixed crats ' androuted to be $1010,000 as he and of Is year and would facewas with incktion To hunde the new prochai ling, the men's rat opening working caplid would be in incent equal ba 15 % of sales meverano. The firm tax rain is back, and its overall wrightd average cost of capital (WALL) is ba. The project is camidared by the financial chpart rent in be in risky as the company. * Find the NPY DUR and discoareed payback ported PUP) at hwe prapci by using the pro formafrancial ataberrant method to dismiss cash flaws. Enter the input variables in culh of their own of the top of the spreadsheet (as it is Funnier in de arraitivity arabyais calculadrank Set up the mccoury equilom by referring to the input variable cells. The mamadsheet must be formula drive; do act put any numbers in squadon only "Che Escalabuilt-in function whomever pawibb (. g NPV and IRR functional. Bot up a barrels in Excel (hais tamala is not boil in) in calculus the each bookrem pain for the biwe can. Iant: Lash breakeven paint shows a level of sales that the operating cash flow (OLF would be arro. Cash BE. point can be calculated