Question
Proposal Summary Initial Investment: $250,000.00 Working capital: $300,000.00 Variable test costs Sampling $300.00 Equipment $315.00 Labor $100.00 Fixed
Proposal Summary
• Initial Investment: $250,000.00
• Working capital: $300,000.00
• Variable test costs • Sampling $300.00
• Equipment $315.00
• Labor $100.00
• Fixed costs $344,000 per year
• Income
• Number of annual tests 7,000
• Test price $800
• Shelf life 3 years
• MARR = 18%
• Salvage value = $100,000.00
• Inflation 3.5% per year
• Price increasing 2% above the inflation
• Variable cost increasing 3% above inflation
• Fixed costs increasing the inflation
• It is profitable?
• THREW. Analysis of Real Pesos
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International financial management
Authors: Jeff Madura
9th Edition
978-0324593495, 324568207, 324568193, 032459349X, 9780324568202, 9780324568196, 978-0324593471
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