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

Answer rating: 100% (QA)

The project is not profitable in real pesos since the total present value of cash infl... View the full answer