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Calculate the growth profits for years 5 through 8 in the following table: (Round to the nearest dollar.) Case 2 Year 5 Year 6 Year
Calculate the growth profits for years 5 through 8 in the following table: (Round to the nearest dollar.) Case 2 Year 5 Year 6 Year 7 Year 8 9,366 9,460 9,555 9,650 $ Sales volume (units) Sales price per unit Total sales revenue Direct cost per unit 24,000 $ 224,784,000 24,000 $ 227,040,000 24,000 229,320,000 24,000 231,600,000 $ 18,000 $ 18,000 $ 18,000 $ 170,280,000 18,000 173,700,000 Total direct costs 168,588,000 171,990,000 Gross profits $ 56,196,000 $ 56,760,000 $ 57,330,000 $ 57,900,000 If Manitowoc's weighted average cost of capital is 10%, what is the cumulative present value of the firm's gross margin? (Round to the nearest dollar.) CASE 2 If Manitowoc Crane maintains the same dollar price, raises the yuan price in China to offset the devaluation, and experiences a 10% drop in unit volume, the annual sales price per unit is $24,000. The direct cost per unit is 75% of the sales, or $24,000~0.75 = $18,000 and the sales volume in year 1 is 10,000 x (1 0.10) = 9,000. Calculate the growth profits for years 1 through 4 in the following table: (Round to the nearest dollar.) Case 2 Year 1 Year 2 Year 3 Year 4 Sales volume (units) 9,000 9,090 9,181 9,273 Sales price per unit 24,000 24,000 $ 216,000,000 24,000 $ 218,160,000 24,000 $ 220,344,000 Total sales revenue 222,552,000 Direct cost per unit $ 18,000 $ 18,000 $ Total direct costs 162,000,000 163,620,000 $ 54,000,000 $ 54,540,000 $ 18,000 $ 18,000 165,258,000 166,914,000 55,086,000 $ 55,638,000 Gross profits
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