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I need it as fast as possible please Thank you Middle East Manufacturing LLC is considering the following project as a part of its plan
I need it as fast as possible please Thank you
Middle East Manufacturing LLC is considering the following project as a part of its plan for expansion of its product line. The life of the project is 5 years. The initial capital investment for the project is AED 5 million. The salvage value of the project by the end of the term is AED 200000. The number of units produced in the first year is 75000. The number of units increases by 10 per cent. The inflation is expected to be 3% per year. The price per unit of the product is AED 40. The production costs are 20 fills per unit. The fixed costs are AED 30000 per year during the term of the project. The initial working capital investment is AED 25000 and thereafter 8 percent of revenues. The opportunity cost of capital is 12 per cent. Evaluate the financial viability of the project based on NPV criteria.||Step by Step Solution
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