Question: Proposal Summary Initial Investment: $250,000.00 Working capital: $300,000.00 Variable test costs Sampling $300.00 Equipment $315.00 Labor $100.00 Fixed

Proposal Summary

• Initial Investment: $250,000.00

• Working capital: $300,000.00

• Variable test costs • Sampling $300.00

• Equipment $315.00

• Labor $100.00

• Fixed costs $344,000 per year

• Income

• Number of annual tests 7,000

• Test price $800

• Shelf life 3 years

• MARR = 18%

• Salvage value = $100,000.00

• Inflation 3.5% per year

• Price increasing 2% above the inflation

• Variable cost increasing 3% above inflation

• Fixed costs increasing the inflation

• It is profitable?

• THREW. Analysis of Real Pesos

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