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Old MathJax webview Titan Matalworks produces a special kind of metal ingots that are unique, which allows Titan to follow a cost-plus pricing strategy. Titan
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Titan Matalworks produces a special kind of metal ingots that are unique, which allows Titan to follow a cost-plus pricing strategy. Titan has $10,000,000 of assets and shareholders expect approximately a 7% return on assets. Assume all products produced are sold. Additional data are as follows: Sales volume 450,000 units per year Variable costs $15 per unit Fixed costs $1,600,000 per year Using the cost - plus pricing approach, what should be the sales price per unit? (Round your answer to the nearest cent.) O A $15.00 B. $18,56 C. $20.11 OD $1.56 A company is evaluating three possible investments. The following information is provided by the company Project A Project B Project C Investment $220,000 $54,000 $220,000 Residual value 0 26,000 36,000 Net cash inflows: Year 1 52,000 34,000 80,000 Year 2 52,000 25,000 50,000 Year 3 52,000 21,000 60,000 Year 4 52,000 18,000 20,000 Year 5 52,000 0 0 What is the payback period for Project A? (Assume that the company uses the straight-line depreciation method. Round your answer to two decimal places.) O A 1.59 years OB. 3.23 years OC. 5,00 years OD. 4.23 years
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