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You are evaluating a project for your company I&Co.. You estimate the sales price to be $25 per unit and sales volume to be 4,000
You are evaluating a project for your company I&Co.. You estimate the sales price to be $25 per unit and sales volume to be 4,000 units in year 1; 7,000 units in year 2; and 1,000 units in year 3. The project has a three-year life. Variable costs amount to $10 per unit and fixed costs are $50,000 per year. NWC requirements at the beginning of each year will be 10 percent of the projected sales during the coming year. What change in NWC occurs at the end of year 1? $17.500 $1,750 $11,550 $7,500
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