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A company is considering a five-year project that would require a $2,812,000 investment in equipment with a useful life of five years and no salvage

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A company is considering a five-year project that would require a $2,812,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 16%. The project would provide net operating income in each of five years as follows: $2,955,000 1.010,000 1,845,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, walaries, and other fixed out-of-pocket cots Depreciation Total fixed expenses Net operating income $ 795.000 562,400 1.350.400 $ 484,500 1. Using Excel, what is the project's net present value? (Round final answer to the nearest whole dollar amount.) Nel present value A company produces two products. Product 1 sells for $125 and Product 2 sells for $85. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 101,000 units of each product Its average cost per unit for each product at this level of activity are given below. Product 1 Product Direct materials $30 Direct labor 21 20 Variable sanatatering overhead Traceable fixed manntacturing overhead 12 Variable selling expenses 13 Common fixed expenses 11 Total coat per unit $105 377 2 $12 6 19 9 16 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Consider each of the following questions separately 7. The company's customers will buy a maximum of 81.000 units of Product 1 and 61000 units of Product 2. If there are only 161,000 pounds of raw material available for production, how many units of each product should be produced to maximize profits? Product Product 2 Units produced

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