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Write with equation please, thank you! If GiggleCore Inc. decides to manufacture a new generation of computer chips with a 5-year project life cycle, it
Write with equation please, thank you!
If GiggleCore Inc. decides to manufacture a new generation of computer chips with a 5-year project life cycle, it expects to sell 1 million units each year. Variable cost per unit will be $82, and fixed costs $5 million. The initial investment will be $22.95 million in manufacturing equipment which depreciates over a 5-year time period toward a $500,000 salvage value, plus an investment of $200,000 in net operating working capital. GiggleCore uses a discount rate of 10%; its marginal tax rate is 36%. To reach break-even NPV, GiggleCore must sell the chips for at least $ eachStep by Step Solution
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