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Please fill in the chart below with the information provided: Please calculate the total variable cost for years 1-5 Option 1: buying 2 machines where

Please fill in the chart below with the information provided:

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Please calculate the total variable cost for years 1-5

Option 1: buying 2 machines where each machine would cost $23,000 and the fixed cost of pro- duction would be $2,300 per machine, or Muhendis sells a unit produced is for $3. On the other side, raw materials cost $0.42 per unit produced and labor costs are $1.29 per unit produced, as well. Additionally, the installation fee is $2,000 per machine. These machines would last Muhendis for 10 years in an accounting sense (MACRS-10 classified), but you already found a suitable buyer for all the machines in the next 5 years so the project would end early in year 5. The buyers will pay 50% of the initial purchase price per machine as the salvage cost. Your supervisors suggest borrowing at a rate of 20% at an interest rate of %15 (effective per year). The loan would last 5 years. Company's MARR is given as 19% and the tax rate is 21%. Strategy department forecasted the next five year's demand as follows; 4 years 1 Demand 15000 2 16000 3 17000 5 19000 18000

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