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It says the projected price for units is $20 million with an expected annual increase of 3% during the life of the project. I don't
It says the projected price for units is $20 million with an expected annual increase of 3% during the life of the project. I don't know if it's 3% across the board or if it should go 3%, 6%, 9% etc? I know the fixed cost below is correct as my teacher did it in class. Please let me know if I did this correctly, its extremely important because it changes my NPV from negative to positive so this one thing that I don't know that I calculated right or wrong can be the deciding factor of accepting or rejecting the project.
$ 20.00 $ 20.60 $ 21.22 S 21.85 S 3% 3% 3% 3% 22.51 S 3% 23.19 3% 23 Price 24 Price Growth 20 29 Fixed Costs 30 Fixed Cost Growth $ 100.00 $ 102.00 $ 104.04 $106.12 S 108.24 S 2% 2% 2% 2% 2% 110.41 2%Step by Step Solution
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