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You are an assistant to the vice president for manufacturing. The staff at one of the plants has recommended approval for a new product with
You are an assistant to the vice president for manufacturing. The staff at one of the plants has recommended approval for a new product with a new assembly line to produce it. The VP believes that the numbers presented are too optimistic, and she has added a set of adjustments to the original estimates. Initial Item Adjustment estimate First cost $70K +10% Units/year 1.2K 20% Net unit $25 15% revenue Life in years 8 -3 Interest rate 12% None Answer the following questions: What is the [ Choose ] . project's benefit- cost ratio as originally submitted? What is the [ Choose ] project's benefit- cost ratio if the VP's adjustments are correct
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