CASE 1

If Manitowoc Crane maintains the same yuan price and in effect sells for fewer dollars, the annual sales price per unit is equal to

($24,000Yuan7.70/$)Yuan8.60/$=$21,488.37.

The direct cost per unit is 75% of the sales, or

$24,0000.75=$18,000.

Case 1	Year 1	Year 2	Year 3	Year 4
Sales volume (units)	20,000	22,400	25,088	28,099
Sales price per unit	$21,488.37	$21,488.37	$21,488.37	$21,488.37
Total sales revenue	429,767,400	481,339,488	539,100,227	603,801,709
Direct cost per unit	$18,000	$18,000	$18,000	$18,000
Total direct costs	360,000,000	403,200,000	451,584,000	505,782,000
Gross profits	$69,767,400	$78,139,488	$87,516,227	$98,019,709

Part 2

Case 1	Year 5	Year 6	Year 7	Year 8
Sales volume (units)	31,471	35,247	39,477	44,214
Sales price per unit	$21,488.37	$21,488.37	$21,488.37	21,488.37
Total sales revenue	676,260,492	757,400,577	848,296,383	950,086,791
Direct cost per unit	$18,000	$18,000	$18,000	$18,000
Total direct costs	566,478,000	634,446,000	710,586,000	795,852,000
Gross profits	$109,782,492	$122,954,577	$137,710,383	$154,234,791

Part 3

If Manitowoc's weighted average cost of capital is 13%, what is the cumulative present value of the firm's gross margin? $enter your response here (Round to the nearest dollar.)