X Company is considering producing and selling a new product. After conducting a market research study...
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X Company is considering producing and selling a new product. After conducting a market research study that cost $4,600, company estimates are that sales of the product will be 8,000 units in each of the next four years, contribution margin per unit will be $6.20, and annual fixed costs will be $15,760. In order to produce the new product, additional equipment would have to be purchased, costing $120,000, with no salvage value at the end of four years. What is the internal rate of return of producing and selling this new product? [Submit your rate as a decimal: .XX] X Company is considering producing and selling a new product. After conducting a market research study that cost $4,600, company estimates are that sales of the product will be 8,000 units in each of the next four years, contribution margin per unit will be $6.20, and annual fixed costs will be $15,760. In order to produce the new product, additional equipment would have to be purchased, costing $120,000, with no salvage value at the end of four years. What is the internal rate of return of producing and selling this new product? [Submit your rate as a decimal: .XX]
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