A company plans to invest for a production plant. Annual production plan is 45 million units. The investment at time 0 that is required for building the manufacturing plant is estimated as $200 million, and the economic life of the project is assumed to be 8 years. The annual total operating expenses, including manufacturing costs and overheads, are estimated as $115 million. The salvage value that can be realized from the project is estimated as $60 million. If the companys interest is 15%, determine the minimum price that the company should have for the product so that the total costs are covered.

A company plans to invest for a production plant. Annual production plan is 45 million units. The investment at time 0 that is required for building the manufacturing plant is estimated as $200 million, and the economic life of the project is assumed to be 8 years. The annual total operating expenses, including manufacturing costs and overheads, are estimated as $115 million. The salvage value that can be realized from the project is estimated as $60 million. If the company's interest is 15%, determine the minimum price that the company should have for the product so that the total costs are covered. Select one: O a. 7.51 O b. 2.33 O c. 4.91 O d. 6.45 e. 3.44 O f. 5.91 Clear my choice