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The Ashton Group is developing a new product line. Initial costs for the line are $93,919. Annual utilities will be $28,983. The company plans to
The Ashton Group is developing a new product line. Initial costs for the line are $93,919. Annual utilities will be $28,983. The company plans to concentrate on marketing for the first 3 years at a cost of $14,942 per year. Profits are anticipated to be zero for the first few years. It is estimated the product line will finally have a profit of $461,961 at the end of year 6 and profits will continue to increase by 15% each subsequent year. The new product line will require 7 employees for the first 6 years. The company will then hire 3 additional employees for the remainder of the product line lifespan. Employees are paid an average of $65,676 per year. Using a lifespan of 20 years and a nominal annual interest rate of 3% compounded annually, what is the equivalent uniform annual worth of the new product line? Notes: Count the years carefully when calculating employee expense after the additional employees are hired. Count the years carefully when calculating the number of years of profit. Enter your answer as 12345 Round your answer. Do not use a dollar sign ("$"), any commas (";"), or a decimal point (":")
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