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Using Excel Google is considering a new product - a modular cell phone. With many parts, like a lego phone, users can construct the cell
Using Excel
Google is considering a new product - a modular cell phone. With many parts, like a lego phone, users can construct the cell phone they want. Product development will cost Google $100 million. It will be complete in less than a year. Manufacturing will cost $40 million per year for each of the first five years of operation. After five years, manufacturing and sales will end. Sales will follow this trajectory: What is the Net Present Value, Annual Worth, and Internal Rate of Return for this project? Google's discount rate is 30%. Shiny Blue Halls. The hallways in Technology Hall need repainting. Labor by EMU facilities will cost $15,000. There are two options for paint: Benjamin Moore paint is expected to last 25 years and cost $12,000 (in addition to labor). ColorPlace Grab-n-Go paint from WalMart is expected to last 6 years and cost $3000 (in addition to labor). What is the best option for EMU, considering their 5% discount factor. Treat this like a roof
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