Question
can someone help solve this using excel? thank u Eastern Engineering has the following base-case estimates for a new small engine assembly project: Capital Investment
can someone help solve this using excel?
thank u
Eastern Engineering has the following base-case estimates for a new small engine assembly project:
Capital Investment = $15,000,000 Fixed Costs = $3,250,000 Variable Costs = $600 per unit Price per Unit = $1,000 Demand = 20,000 units per year Service Life = 12 years Salvage Value = $500,000 MARR = 20%
a)Find the net present worth, equivalent annual worth, and rate of return of this base-case scenario.
b)if the variable costs were to be 15% lower, how would it affect the net present worth, equivalent annual worth, and rate of return of the project? What if the variable costs were 15% higher?
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