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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)20,000 vehicles in2023; (b)24,000 vehicles in 2024; (c)29,000 vehicles in 2025; (d)36,000 vehicles in 2026 and (e)25,000 vehicles in 2027. The project will last for five years after which Appled Communications Systems inc. will move production of their autonomous driving electric vehicle in-house. You will need an initial $208,000,000 investment in equipment to get the project started. The accounting department estimates that annual fixed costs will be $25,000,000 and that variable costs should be $11,850 per vehicle; the CCA rate for the equipment is 20 percent. It also estimates a salvage value of 30 percent of the initial cost of the equipment after dismantling costs. The marketing department estimates the selling price to be $21,750 per vehicle. The engineering department estimates you will need an initial net working capital investment of $35,000,000. You will need additional working capital that will be 40 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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