You have decided to open a microbrewery selling university-themed beers as one of your product lines. You need to conduct a breakeven analysis of sales and price. You know your fixed costs but based on your marketing plan you are not sure of pricing and sales. Your company MARR is 5%, and fixed costs include an initial capital investment of $250,000 with fixed annual expenses of $100,000. Use a 5-year planning horizon and assume that these expenses will not grow with inflation. 

a. Draw the cash flow diagram.

 b. Populate the following table and plot the NPW results in a meaningful plot. (Make sure you label your axis, and your plot should contain three curves.)

 c. Make a pricing recommendation as a function of sales. You would like to make a minimum of $100,000 for your work on this project.

Answer rating: 100% (QA)

ANSWER A Cash flow diagrams visually represent income and expenses over some time interval The diagram consists of a horizontal line with markers at a series of time intervals At appropriate times exp... View the full answer