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3 Estimated time allowance: 1 7 . 5 minutes ) EasyTop Corp. has decided to sell a new line of Cell phones. The firm has
Estimated time allowance: minutes EasyTop Corp. has decided to sell a new line of Cell phones. The firm has also spent $ million in research and development for the new Cell phones line. It is estimated that the new Cell phones will sell for $ per unit and have a variable cost of $ per unit. The firm has spent $ in market research for these new Cell phones. It is concluded in this study that the firm can easily sell Cell phones in each of the following ten years. As part of the research, it was found that the firm is very likely to lose sales of units of its existing highpriced Cell phones. These Cell phones currently sell for $ each and have variable costs of $ On the positive side, the study also revealed that the firm will increase sales of its cheap Cell phones by units. The cheap Cell phones sell for $ and have variable costs of $ per set. The cash fixed costs each year will be $ million. The annual depreciation straightline is $ million. The corporate tax rate is What is the earnings before interests, taxes, depreciation and amortization EBITDA The answers are giving in millions of dollars. For example, if the result of solving the problem is $ then the choice from below will be stated as ; if the result of solving the problem is $ then the choice below will be stated as
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