Chapter $8$ Problem $12$ Suggested Answers

a$).$

Facts and Assumptions

$\backslash$table$[[$Initial cost $($ $$000$ omitted$),28,000],[\backslash$table$[[$Unit sales $(000$ Omitted$)],[$Selling nroco$]],400],[\backslash$table$[[$Selling price per unit, this year$],[$Variable cost ner unit thic$]],60],[\backslash$table$[[$Variable cost per unit, this year$],[$Life expectancy $($years$)]],\backslash$table$[[\backslash$table$[[42],[8]]]]],[\backslash$table$[[$Salvage value$],[$Depreciation$]],$$$0],[\backslash$table$[[$Depreciation$],[$Tax rate$]],$Straight line$],[\backslash$table$[[$Tax rate$],[$Nominal discount rate$]],37\%$