Question
Assume that if the new product is introduced, sales of the current product would increase by 30,000 units per year. The current product has a
Assume that if the new product is introduced, sales of the current product would increase by 30,000 units per year. The current product has a selling price of 10 per unit with a variable cost of 6 per unit. It would also bring about an increase in accounts receivable and inventories of 60000 Using NPV determine if the new product should be introduced in this new scenario.
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The NP V of the new product would be Sales of new product 30 000 units 10 per unit 300 ...Get Instant Access to Expert-Tailored Solutions
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
7th edition
978-0077616472, 77616472, 78034647, 978-0071314749, 71314741, 978-0078034640
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