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The salaries were too low in the data of Table 14.1 and the salaries for engineers and technicians were increased to $80,000 and the management
The salaries were too low in the data of Table 14.1 and the salaries for engineers and technicians were increased to $80,000 and the management and sales were increased to $100,000. The tax rate was decreased to 20%. Table 14.1 has been adjusted as followes. Calculate the present worth of the cash flows when process capacity is 82 kg/hr, 95 kg/hr, and 118 kg/hr.
Land and Building Construction = $10,000,000 Equipment and Controls = $20,000,000 Total Investment = $30,000,000 Annual Revenues Product Sales 340 days/yr * 24 hr/day * 100 kg/hr * 0.8 kg product/kg wire used*$ 40/kg = $26,112,000 Annual Expenses Labor Engineers and Technicians 50 Employees @ $80,000 4,000,000 Management and Sales 6 Employees @ $100,000 600,000 Operating Costs Materials 340 days/yr*24 hr/day*100 kg/hr*1*10 $/kg = $8,160,000 Annual Utility Costs = $200,000 Yearly New Equipment Investment = $1,000,000 Annual Depreciation Expenses = $2,000,000 Total Annual Expense 15,960,000 Gross Profit 10,152,000 Taxes @ 20% 2,030,400 Net Profits 8,121,600Step by Step Solution
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