Question: Save Answer Question 12 1 points Joey Jukebox's is building a factory that can make 13.000 jukeboxes a year for 10 years. The factory costs
Save Answer Question 12 1 points Joey Jukebox's is building a factory that can make 13.000 jukeboxes a year for 10 years. The factory costs $1 million in year 1. each jukebox will sell for 35,456The price will rise 2% each year. During the first year, variable costs will be $2,245 per jukebox and will rise by 1% each year, Joey Jukebox will depreciate the factory at a CAA rate of 18% Joey Jukebox expects the be able to sell the factory for $500,000 at the end of 10 years Assume the company has other assets and UCC is always positive in the asset class The discount rato for cash flows is 13% The discount rate for risk free cash flows s 10% cash flows, except the initial investment, occur at the end of the year. The corporate tax rates 38% What is the it is the CCA the shielding n this situation O $138.900.10 $175,453 44 3188 090.46 $233 181 82
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