Question
A company sells a product in four markets. The manager of decided to focus only on two markets instead on four markets. The Quantity Produced
A company sells a product in four markets. The manager of decided to focus only on two markets instead on four markets.
The Quantity Produced should be 7500 per market in the first year and it is expected to grow by 6% every year.
The Cost Per Unit is $90 and expected to decrease by 5% every year.
The Price Per Unit is $180 and expected to decrease by 4% per year.
The mangers Knows that the Quantity Sold and its Growth Rate is different in every market. So, he decided to develop a Planning Model and calculate the NPV for every market to find out which markets are going to be more profitable best two markets.
Question3: Develop an excel model that calculate the profits over 5 years for the Third Market. Knowing that the Quantity Sold is shown as a non- linear function of price:
Price | Quantity Sold |
$125.00 | 9,000 |
$175.00 | 7,500 |
$225.00 | 6,000 |
$275.00 | 5,500 |
$325.00 | 4,000 |
solve using excel
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