Question: The REV-Sport auto has passed through the concept and initial design phases and is ready for final design and manufacturing. Final development costs are estimated

The REV-Sport auto has passed through the concept and initial design phases and is ready for final design and manufacturing. Final development costs are estimated to be $75 million, and the new fixed costs for tooling and manufacturing are estimated to be $600 million.

The REV-Sport is expected to sell for $30,000. The first year sales for the REV-Sport is estimated to be 60,000, with a sales growth for the subsequent years of 6% per year.

The variable cost per vehicle is estimated to be $22,000.

The discount rate is 5%.

What are the total number cars produced in the 4 years?

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