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Alex Ltd is evaluating the purchase of new machine and has the following information: Initial investment $350,000 No residual value Sales volume 20,000 units Solos

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Alex Ltd is evaluating the purchase of new machine and has the following information: Initial investment $350,000 No residual value Sales volume 20,000 units Solos price $8.5 Variable cost $3.5 Fixed cost $ 24,875 Cost of capital 15% Expected life 10 years the sonsitivity of the purchase to a change in sales price Soloct one: a. Increaso 3.2 cont b.docrease 27 cont c. Increase 27 cont d. Increase 27 cont a docraso 32 cont

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