Question
Please show the answer solved in Excel. Thank you Use the following data to calculate the benefit cost ratio and average payback period for the
Please show the answer solved in Excel. Thank you
Use the following data to calculate the benefit cost ratio and average payback period for the following new technology opportunity that you plan to employ for four years and indicate if you would pursue it or not. The equipment purchase price is $13,500,000 plus a 10% installation fee. In addition, you pay an up-front exclusivity fee of $250,000 to the manufacturer so no other provider in your market area will have access to the technology for five years. Maintenance is included for the first year, an item that has an annual cost of $15,000. Volume is planned to be 100,000 units in the first year, growing by 50,000 each year thereatter. The price charged per unit is $50.00 with a 75% collection rate. One FIE earnina 3b hour is eliminated because of this technoloav. New technicians 4.5 FIES) paid s/b/hour will be hired to run the equipment. The fringe benefits rate IS 20%. The hurdle rate IS 4.5%
Please
show the answer solved in Excel. Thank you
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