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1 . The cost of the marketing test is $ 2 5 0 , 0 0 0 . 2 . The new product will be
The cost of the marketing test is $
The new product will be manufactured in a building owned by the company. If not
manufactured, the building would be sold for $
The cost of the machine is $ and is expected to be used for years, after which
it is expected to be sold for $
The price of a unit of production is $ and it is expected to grow at a rate of per
year.
The tax rate is and the production cost is $ per unit, which is expected to grow
at a rate of per year.
Depreciation is calculated using the Modified Accelerated Cost Recovery System.
Net working capital at the time of the investment is $ and in subsequent years, it
is expected to be of the total expected sales.
The marketing test concluded that the expected production levels for the next years are: EQuantity Demanded; ; ; ; BASED ON THE INFORMATION ABOVE, FILL OUT THE UNKNOWN INFORMATION BELOW: Intial Investments
Salvage Value
Intial Revenue
Initial Exspenses
Inflation Rate
Discount Rate
Acct Rec. As Frac Of Sales
Inven. As Frac Of Expenses
Tax Rate
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