Question: Suppose the following: Current Price per unit (P)=$9 Current average monthly sales quantity (Q)=9,000 Variable cost per unit (v)=$4 Fixed costs =$0 per month month

 Suppose the following: Current Price per unit (P)=$9 Current average monthly

Suppose the following: Current Price per unit (P)=$9 Current average monthly sales quantity (Q)=9,000 Variable cost per unit (v)=$4 Fixed costs =$0 per month month is time 1, the following month is time 2, etc.). Assume that cash flows will happen each period forever. ANNUAL required rate of return =9% i) What is the present value of all cash flows, including those occurring today? Present Value =$ (Round to the nearest dollar, with NO decimal! Do NOT use commas!) policy, price will increase by $0.50 /unit and average monthly sales will increase to 9,400 . There is no anticipated change to variable unit costs. NPV =$ (Round to the nearest dollar, with NO decimal! Do NOT use commas!) Suppose the following: Current Price per unit (P)=$9 Current average monthly sales quantity (Q)=9,000 Variable cost per unit (v)=$4 Fixed costs =$0 per month month is time 1, the following month is time 2, etc.). Assume that cash flows will happen each period forever. ANNUAL required rate of return =9% i) What is the present value of all cash flows, including those occurring today? Present Value =$ (Round to the nearest dollar, with NO decimal! Do NOT use commas!) policy, price will increase by $0.50 /unit and average monthly sales will increase to 9,400 . There is no anticipated change to variable unit costs. NPV =$ (Round to the nearest dollar, with NO decimal! Do NOT use commas!)

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