Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I know how to do the first part. I do not know how to get the NPV without the discount rate. Please help :) A
I know how to do the first part.
I do not know how to get the NPV without the discount rate. Please help :)
A company will sell Gizmos to consumers at a price of $112 per unit. The variable cost to produce Gizmos is S47 per unit. The company expects to sell 19.000 Gizmos to consumers each year. The fixed costs incurred each year will be $230,000. There is an initial investment to produce the goods of $3,800,000 which will be depreciated straight line over the 10 year life of the investment to a salvage value of SO. The opportunity cost of capital is 10% and the tax rate is 33%. What is operating cash flow each year? 798750 Correct response: 798,7501 Click "Verify" to proceed to the next part of the question. Using the an annual operating cash flow of $798,750, what is the net present value of this investment? Number Should the company accept or reject this project? Reject Accept Click "Verify" to proceed to the next part of theStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started