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you just discovered that there is a market for hypothetical mini plastic and this market will last 3 years. you also have the following project
you just discovered that there is a market for hypothetical mini plastic and this market will last 3 years. you also have the following project to manufacture them with the following details:
Sales price = $5 per unit Number of unit produced and soldper annum = 10,000 Variable cost = $3 per unit Fixed cost = $5000 per annum intial outlay = $ 21000 Depreciation = straght-line working capital= 20% of annual sales tax rate is 34% required rate is 34% required rate of returb = 20%
is this project worth undertaking?
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