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A company sells Widgets to consumers at a price of $118 per unit. The costs to produceWidgets is $20 per unit. The company will sell

A company sells Widgets to consumers at a price of $118 per unit. The costs to produceWidgets is $20 per unit. The company will sell 16,000 Widgetsto consumers each year. The fixed costs incurred each year will be $180,000. There is an initial investment to produce the goods of $2,300,000 which will be depreciated straight line over 7 year life of the investmentto a salvage value of $0. The opportunity cost of capital is 9% and the tax rate is 28%.

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