Markel A medical factory is planning to produce mask. The initial expected cost of expenditure of the
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Markel A medical factory is planning to produce mask. The initial expected cost of expenditure of the factory is $650.000. Assume that the medical factory lifetime is 5years and maintenance and operating costs are $25,000 for the first year, increasing by $1000 per year thereafter. The expected demand is assumed to be constant at 1,000,000 mask per year. The annual interest rate. is 10r.
For how much the factory can sell each mask in order to economically justify the project. If the average price of a mask in the country is 503 , do you recommend operating the factory? Why?
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Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
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