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Q 1(a) [5 Marks] Suppose that a company's fixed cost for a period of time is 75000 and the variable cost per item is 430.
Q 1(a) [5 Marks] Suppose that a company's fixed cost for a period of time is 75000 and the variable cost per item is 430. Calculate the unit cost at a production volume of 4500. Q 1(b) [15 Marks] A company invests a lump sum in a project and the project generates cash flow (income) in three consecutive interest periods: Interest periods 1 Cash flow 13000 25000 32000 2 3 Suppose that the internal rate of return of the project is 8%. Calculate the amount of the initial investment
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