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Selling price of new device $ 23.50/unit Estimated sales 245,000 units Investment in additional equipment $5,200,000 Cost of production $12.32/unit The company's minimum required rate
Selling price of new device $ 23.50/unit Estimated sales 245,000 units Investment in additional equipment $5,200,000 Cost of production $12.32/unit The company's minimum required rate of return 22% Required: a. What are the projected sales dollars for the new device? b. What is the net operating income? c. Calculate the return on investment (ROI) d. Calculate residual income e. Is this a good investment for the company? Why or why not
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Contemporary Engineering Economics
Authors: Chan S. Park
5th edition
136118488, 978-8120342095, 8120342097, 978-0136118480
