Manufacturing company is analyzing their current financial situation What is the present worth of the incremental...

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Manufacturing company is analyzing their current financial situation What is the present worth of the incremental investment in the company? Note that plat life is 15 years Assets Initial Investment Annual operation cost overhauls in year each 5 year (i.e. 5,10 &15) Annual material cost Annual sales Salvage value MARR PW - Net present value NPV FW AW Values $2,000,000 $60,000 $30,000 $300,000 ?? ?? 20% Monthly Quarterly Semiannually Yearly a) Find the break-even quantity if the selling price is $20 per unit and the variable cost is $15 per unit (regardless the above annual cost) b) If the Current level of production is 500,000 units/yr find the annual sales and annual profit? c) IF the machines follow a declining balance depreciation with 5%, find the salvage value of assets ? d) Using the results from parts a, b & c find the PW, FW AW for different compounding periods if the production level is 500,000 unit per year Manufacturing company is analyzing their current financial situation What is the present worth of the incremental investment in the company? Note that plat life is 15 years Assets Initial Investment Annual operation cost overhauls in year each 5 year (i.e. 5,10 &15) Annual material cost Annual sales Salvage value MARR PW - Net present value NPV FW AW Values $2,000,000 $60,000 $30,000 $300,000 ?? ?? 20% Monthly Quarterly Semiannually Yearly a) Find the break-even quantity if the selling price is $20 per unit and the variable cost is $15 per unit (regardless the above annual cost) b) If the Current level of production is 500,000 units/yr find the annual sales and annual profit? c) IF the machines follow a declining balance depreciation with 5%, find the salvage value of assets ? d) Using the results from parts a, b & c find the PW, FW AW for different compounding periods if the production level is 500,000 unit per year

Answer rating: 100% (QA)

a The break even quantity is 500000 units This is calculated by dividing the total cost fixed variab... View the full answer