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A company plans to invest for a production plant. Annual production plan is 50 million units. The investment at time that is required for building
A company plans to invest for a production plant. Annual production plan is 50 million units. The investment at time that is required for building the manufacturing plant is estimated as $600 million, and the economic life of the project is assumed to be 11 years. The annual total operating expenses, including manufacturing costs and overheads, are estimated as $125 million. The salvage value that can be realized from the project is estimated as $90 million. If the company's interest is 17%, determine the minimum price that the company should have for the product so that the total costs are covered. Select one: O a. 5.91 O b. 4.91 O c. 7.51 O d. 2.33 O e. 6.45 O f. 3.44
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