Question: need complete solution 2. Payback Period Use the EBITDA (Gross Profit) from the BEP Data for the Payback period first year then 3% increase year
need complete solution
2. Payback Period Use the EBITDA (Gross Profit) from the BEP Data for the Payback period first year then 3% increase year on year due to the company seen process improvements reducing costs and thus increasing margin. The fixed costs are not sharable, they have already been allocated per product. 3. Net Present Value (NPV) Use the EBITDA (Gross Profit) from the BEP data for the planned annual return, only use this value not ones generated for Payback. Widget Ltd. Data Initial Investment Fixed Costs/ Year Variable Costs / Unit Selling Price / Unit Unit Volume Discount Rate Widget 1 1,000,000 70,000 5 8 80,000 1.5% Widget 2 1,200,000 65,000 4.5 9 60,000 1.5%
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