Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Periods Discount rates (r) (u) 1% 2% 3% 4% 5% 7% 8% 9% 10% 0.990 0980 0971 0.962 0952 0943 0935 0926 0917 0.900
Periods Discount rates (r) (u) 1% 2% 3% 4% 5% 7% 8% 9% 10% 0.990 0980 0971 0.962 0952 0943 0935 0926 0917 0.900 2222 20 $2 6.258 0229 14 8212 $30 021 02080147 00 0204 0182 0130145 02080185 0152 0137 0.124 0112 0130 100 0125 111 0100 0.140 0.123 0100 0095 0116 0.104 0.063 co 0064 0.04 0.05 29% 30% 0813 0781 0.980 0961 0.943 2 0.925 0907 0890 0.873 0857 0.842 0.826 3 Ma 3 0.971 0.942 0.915 0.889 0.864 0840 0.816 0.794 0.772 0.751 4 4 0.961 0.924 0.888 0.855 0823 0.792 0.763 0.735 0708 0683 0451 03370 0951 0906 0863 0.942 0.888 0.837 7 0.933 0871 0813 0822 0784 0.790 0.760 0.711 0747 0.713 0681 0650 0.621 0740 0.705 0.006 0.630 0.596 0.504 3 30 23 24 28 0204 0.665 0623 0.583 180 0547 0.513 10 C14D 0923 0.853 0.789 0.731 0.677 0627 9 0.914 0.837 0.766 0.703 0.645 0.592 10 0.905 0.820 0.744 0.676 0614 11 0.896 0.804 0.722 0.650 0585 12 13 0887 0.788 0701 0625 0.879 0773 0681 14 0.870 0758 0.661 15 0.861 0.743 0.642 0.557 0497 0444 0397 0.356 0.319 0.601 0530 0409 0415 0368 0.326 0.290 0.577 0505 0.442 0388 0.340 0.299 0.263 0.555 0481 0417 0.362 0315 0275 0.239 0582 0540 0.502 0.544 0.500 0.460 0.424 0658 0508 0463 0422 0.527 0475 0.429 0.388 0467 11 123 12 6102 12 137 112 0.002 004 075 0.386 0.350 15 000 0001 0.055 0.0 055 009 0.044 057 205 0015 0040 21% 22% 225 24% 2% 29% 27% 082 383 0807 0800 0794 0787 672 0650 0640 0630 020 0410 0400 0525 8512 0500 0477 0437 423 0410 037 0384 0373 0355 0341 0300 0.315 0299 0215 0212 0200 0216 0212 0210 101 0170 180157 0.155 0.144 0.134 0126 0126 0116 0.107 0000 0103 00 0.006 0479 0030076 0000063 0.775 0719 0401 040415 636 0.350 0303 0.21 0.200 0.300 0238 0227 0217 2 0158 017 018 019 0148 130 0.13 $123 0116 0108 0.101 0.064 0.0000 0.0 0073 0.072 0.066 0.00 0.006 0067 0062 0047 0043 0045 0040 0007 0.003 0:00:11 00000005 0.002 0.000 11% 1 2 4 $ 0.503 0.567 0.543 6 7 9 2:2232 10 11 12 13 14 15 21% 22% 1 23% 24% 25% 0.826 0.820 0813 0807 0.800 2 3 0410 0.397 0.328 0.315 9 0218 0.218 0.180 0.167 0.156 0.144 10 0.149 0.137 11 0.123 0.112 12 0.102 0.092 0061 0.075 0.263 0.249 0.235 0222 0.204 0.191 0.179 0210 0.683 0.672 0.061 0.650 0040 0.630 0.620 0610 0.001 0.565 0.551 0537 0525 0.512 0.500 0.488 0.477 0.467 0451 0.437 0423 0.384 0.373 0.361 0.306 0.370 0.355 0.341 0.303 0.291 0.280 0.319 0.303 0.289 0275 0.262 0.250 0.238 0.227 0217 0207 0.198 0.188 0.178 0.168 0.159 0.157 0.148 0.139 0.130 0.123 0.125 0.116 0.108 0.101 0094 0.099 0.092 0085 0.078 0.073 0.079 0.072 0006 0061 0056 0.057 0.063 0.052 0043 0047 12% 13% 14% 15% 16% 17% 18% 19% 20% 0.901 0.893 0.885 0877 0.870 0.862 0.856 0.847 0840 0.833 0.812 0.797 0.783 0.709 0.756 0.743 0.731 0.718 0.706 0694 0.731 0.712 0.003 0675 0058 0.041 0.024 0000 0.503 0579 0.659 0636 0613 0592 0.572 0.552 0.534 0.516 0499 0482 0519 0497 0.476 0.456 0.437 0.419 0.402 0.535 0.507 0480 0456 0432 0.410 0.390 0.370 0.352 0335 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.434 0.404 0.376 0351 0.327 0.305 0.285 0206 0.249 0.391 0.361 0333 0.308 0204 0.263 0.243 0.225 0352 0322 0296 0270 0.247 0208 0.191 0.317 0.287 0.261 0237 0215 0.178 0.162 0.148 0135 0.286 0.257 0.231 0208 0.187 0.152 0,137 0.124 0.112 0.250 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0093 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078 0.200 0.183 0.160 0.140 0.123 0.108 0.005 0.084 0074 0005 26% 27% 28% 29% 30% 0.794 0.787 0.781 0.775 0.769 0.592 0.466 0455 0.350 0.279 0233 0.209 0194 0227 0.176 0.162 SECTION A: You must answer all parts of the question in this section. 0.195 0.168 0.134 0.126 0116 0.107 0.103 0094 0000 0.083 0.078 0.069 13 0.084 0.068 0.055 0.050 0.045 0.040 0.037 0.033 14 0.069 0.062 0.055 0.049 0.044 0.039 0.035 0.032 0.028 0.025 15 0.057 0.051 0.045 0.040 0.035 0.031 0.028 0.025 0.022 0.020 Selling Price Variable production costs Incremental fixed production costs. 0.269 QUESTION 1 The directors of Jump Plc has just developed two new products A and B and is now considering to put one of them into production. The following information is available: For Product A Research and development costs already incurred 100,000 Initial investment in machinery 2 milion Residual value 130,000 45 per unit 35 per unit 115,000 per year For Product B SECTION A: You must answer all parts of the question ir this section. Research and development costs already incurred 200,000 Initial investment in machinery Residual value Seling Price Variable production costs Incremental Sxed production costs. 2 milion 200,000 50 per unit 40 per unit 115,000 per year *Please note for the initial investment in machinery of product B, half is payable immediately and the other half is payable after one year. Expected demand per year in units Product A Product B Year 180,000 64,500 AT
Step 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