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Financial Accounting 2 Coursework No, 3 This assignment represents 15% of your final grade. It is to be done in groups of 35. Submissions should
Financial Accounting 2 Coursework No, 3 This assignment represents 15% of your final grade. It is to be done in groups of 35. Submissions should include Terminator Pest Control (TPC), Inc. anticipates unit sales for a new householduse electronic rodent eradication system as follows: The eradication system will require $875,000 in net working capital to start. Total annual fixed costs are expected to be $200,000. Variable production costs are expected to be $75 per unit, and the units are priced at $105 each. The equipment needed to begin production has a purchase cost of $9,000,000, freight and customs duties amount to $500,000 and installation and testing will be $250,000. In five years, the equipment can be sold for 25% of its purchase cost. TPC has a required return on all its projects of 12%
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