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You are the Business Financial Analyst for Thundai Motor Company. Your company have recently been approached by the APPLED Communication Sytems Inc. to develop and
You are the Business Financial Analyst for Thundai Motor Company. Your company have recently been approached by the APPLED Communication Sytems Inc. to develop and supply a new autonomus driving electric vehicle for them. The project require your company to supply a vehicles in; b vehicles in ; c vehicles in ; d vehicles in and e vehicles in The project will last for five years after which Appled Communications Systems inc. will move production of their autonomous driving electric vehicle inhouse. You will need an initial $ investment in equipment to get the project started. The accounting department estimates that annual fixed costs will be $ and that variable costs should be $ per vehicle; the CCA rate for the equipment is percent. It also estimates a salvage value of percent of the initial cost of the equipment after dismantling costs. The marketing department estimates the selling price to be $ per vehicle. The engineering department estimates you will need an initial net working capital investment of $ You will need additional working capital that will be percent of the the increase in next years sales revenue. Years will no increase in sales will not require addtional working capital. Your company
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