Required information Exercise 15-32 Pricing, Advertising, and Special-Order Decisions (L0 15-10) [The foiiowing information applies to the questions dispiayeo' beiowj Corrientes Company produces a single product in its Buenos Aires plant that currently sells for 6.20 ,0 per unit. Fixed costs are expected to amount to 59,000 pier the year, and all variable manufacturing and administrative costs are expected to be incurred at a rate of 2.20 ,0 per unit. Corrientes has two salespeople who are paid strictly on a commission basis. Their commission is 11 percent of the sales revenue they generate. (Ignore income taxes.) (,0 denotes the peso. Argentina's national currency. Many countries use the peso as their national currency. On the day this exercise was written, Argentina's peso was worth $0.104 U.S. dollar.) Exercise 15-32 Part 2 2. The Sorde Company hasjust approached Corrientes to make a special onestime purchase of 18.000 units. These units would not be sold by the sales personnel. and, therefore, no commission would have to be paid. What is the price Corrientes would have to charge per unit on this special order to earn additional profit of 34.200 ,0? (Do not round intermediate calculations. Round your answer to 2 decimal places. Enter your answer in pesos.) Sales price required p per unit Exercise 16-24 Net Present Value (Section 1) (L0 16-1) Jack and Jill's Place is a nonprofit nursery school run by the parents of the enrolled children. Since the school is out of town, it has a well rather than a city water supply. Lately. the well has become unreliable, and the school has had to bring in bottled drinking water. The school's governing board is considering drilling a new well {at the top of the hill, naturally}. The board estimates that a new well would cost $2,900 and save the school $530 annually for 10 years. The school's hurdle rate is 8 percent. Use appendix A for your reference. {Use appropriate factor(s} from the tables provided.) Required: Compute the new well's net present value. Should the governing board approve the new well? (Round your final answer to the nearest dollar amount.) Net present value Approve? Jack and Jill's Place is a nonprot nursery school run by the parents of the enrolled children. Since the school is out of town, it has a well rather than a city water supply. Lately, the well has become unreliable, and the school has had to bring in bottled drinking water. The school's governing board is considering drilling a new well [at the top of the hill, naturally]. The board estimates that a new well would cost $2.608 and save the school $500 annually for 10 years. The school's hurdle rate is 13 percent. Use appendix A for your reference. [Use appropriate factor(s] from the tables provided.} Required: Compute the internal rate of return on the new well. Should the governing board approve the new well? Internal rate of return Approve? The trustees of the Danube School of Art and Music, located in Tuttlingen, Germany, are considering a major overhaul of the school's audio system. With or without the overhaul, the system will be replaced in two years. If an overhaul is done now, the trustees expect to save the following repair costs during the next two years: year 1, 4,600 euros; year 2, 6,600 euros. The overhaul will cost 8,869 euros. (The euro is used in most European markets.) Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: Use trial and error to compute the internal rate of return on the proposed overhaul. (Hint: The NPV of the overhaul is positive if an 12 percent discount rate is used, but the NPV is negative if a 20 percent rate is used.) Internal rate of return %