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please be clear on the answers, thank you Mer 11 Capital Budgeting The American Association of Colleges and Universities estimates that 10 percent of all
please be clear on the answers, thank you
Mer 11 Capital Budgeting "The American Association of Colleges and Universities estimates that 10 percent of all college students cheat at some time during their postsecondary education careers. A publishing company is considering the option to offer a new book How to Cheat: A User's Guide. The company has a cost of capital of 8% and estimates it could sell 10,000 volumes by the end of year one and 5.000 volum each of the following two years. The immediate printing costs for the 20.000 volumes would be $20,000. The book would sell for $7.50 per copy and not the company a profit of $6.00 per copy after royalties, marketing costs, and taxes, Year one net would be $60,000 From a capital budgeting standpoint, is it financially wise to buy the publication rights? What is the payback of this investment (answer numerically? Would publishing the book encourage cheating? Would it be wise for the publishing company to be associated with cheating? What sort of ramifications might the publishing company face from offering the book? Who would the decision impact? What are the financial and social implications Step by Step Solution
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