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Case Study: is a volume manufacturer of high technology automotive mirrors (including cell and voice Fx, Inc. activation). FX is looking to expand their operations

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Case Study: is a volume manufacturer of high technology automotive mirrors (including cell and voice Fx, Inc. activation). FX is looking to expand their operations to add a second product line capable of producing 1.3 Million units per year. The equipment investment cost for this new operation is $32 Million. The project falls under a 7-year MACRS class life and the company estimates that the salvage value will be $2.7 Million at the end of the 6 year project. The average selling price for each mirror is $85 per unit. The annual expected sales shown below: Vear2019 Year Volume 2020 750 2021 1000 2022 1200 2023 1250 2024 1280 600 (000)

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