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We believe we can sell 90,000 home security devices per year at $150 per piece. They cost $130 to manufacture (variable cost). Fixed production costs
We believe we can sell 90,000 home security devices per year at $150 per piece. They cost $130 to manufacture (variable cost). Fixed production costs run $215,000 per year. The necessary equipment costs $785,000 to buy and would be depreciated at a 25 percent CCA rate. The equipment would have a zero salvage value after the five-year life of the project. We need to invest $140,000 in net working capital up rate is 35 percent. What is the NPV of the project? (Do not round your intermediate calculations. Round the final answer to 2 decimal places.) NPV
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