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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

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Estimated time allowance: 17.5 minutes) EasyTop Corp. has decided to sell a new line of Cell phones. The firm has also spent $2 million in research and development for the new Cell phones line. It is estimated that the new Cell phones will sell for $890 per unit and have a variable cost of $440 per unit. The firm has spent $450,000 in market research for these new Cell phones. It is concluded in this study that the firm can easily sell 170,000 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 26,000 units of its existing high-priced Cell phones. These Cell phones currently sell for $1,300 each and have variable costs of $550. On the positive side, the study also revealed that the firm will increase sales of its cheap Cell phones by 23,000 units. The cheap Cell phones sell for $290 and have variable costs of $140 per set. The cash fixed costs each year will be $27 million. The annual depreciation (straight-line) is $10 million. The corporate tax rate is 20%, 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 $2,300,000 then the choice from below will be stated as 2.30; if the result of solving the problem is $3,000,000 then the choice below will be stated as 3.00
You can use a formatted shell excel for this problem by clicking here
a)23.45
b)28.76
c)33.45
d)76.50
e)57.00
f)18.76
g)79.95
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