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X Co needs someone to supply it with 140.000 cartons of machine screws per year to support its manufacturing needs over the next five years
X Co needs someone to supply it with 140.000 cartons of machine screws per year to support its manufacturing needs over the next five years and you have don contract it will cost you $20,00 000 to install the equipment necessary to start production you wil depreciate train to zero ver the projects Sarah szero Fixed production costs are $250 000 per year and variable costs we be 59 per carton The Investment in Net Wortang CNC5150.000 You need the NWC at the end of the projects. The corporate tax rate is 25 and you require 15% on your investment what price should you to che the project NPV equal to zero and find the required price. Thus the price represents the cat ware of the price of the breakeventeve me pred TOM X Co needs someone to supply it with 140.000 cartons of machine screws per year to support its manufacturing needs over the next five years and you have don contract it will cost you $20,00 000 to install the equipment necessary to start production you wil depreciate train to zero ver the projects Sarah szero Fixed production costs are $250 000 per year and variable costs we be 59 per carton The Investment in Net Wortang CNC5150.000 You need the NWC at the end of the projects. The corporate tax rate is 25 and you require 15% on your investment what price should you to che the project NPV equal to zero and find the required price. Thus the price represents the cat ware of the price of the breakeventeve me pred TOM
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