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You are evaluating a product for your company. You estimate the sales price of product to be $210 per unit and sales volume to be
You are evaluating a product for your company. You estimate the sales price of product to be $210 per unit and sales volume to be 11,100 units in year 1; 26,100 units in year 2; and 6,100 units in year 3. The project has a 3 year life. Variable costs amount to $135 per unit and fixed costs are $211,000 per year. The project requires an initial investment of $357,000 in assets which will be depreciated straight-line to zero over
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