Business, 06.05.2020 23:15 100113801

A company is considering constructing a plant to manufacture a proposed new product. The land costs $250 comma 000, the building costs $700 comma 000, the equipment costs $300 comma 000, and $150 comma 000 additional working capital is required. It is expected that the product will result in sales of $850 comma 000 per year for 11 years, at which time the land can be sold for $450 comma 000, the building for $300 comma 000, and the equipment for $60 comma 000. All of the working capital would be recovered at the EOY 11. The annual expenses for labor, materials, and all other items are estimated to total $500,000. If the company requires a MARR of 15% per year on projects of comparable risk, determine if it should invest in the new product line. Use the AW method.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 10:00, makennskyee1198

Carrie works at a canned food production factory. the government wanted to give a boost to the salt industry, so it lined up numerous subsidies and tax exemptions for the sector. this lead to a decrease in production costs. this also meant that consumers could access canned foods at a lower price, which lead to an increase in demand for the product. which kind of economic system is carrie’s company dealing with? carrie’s company is dealing with a/an economy.

Answers: 2

continue

Business, 22.06.2019 10:30, abigail251

Factors like the unemployment rate, the stock market, global trade, economic policy, and the economic situation of other countries have no influence on the financial status of individuals. ( t or f)

Answers: 1

continue

Business, 22.06.2019 17:00, HourlongNine342

Serious question, which is preferred in a business? pp or poopoo?

Answers: 1

continue

Business, 22.06.2019 17:40, rave35

Croy inc. has the following projected sales for the next five months: month sales in units april 3,850 may 3,875 june 4,260 july 4,135 august 3,590 croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. direct material costs $2.50 per pound, and each unit requires 2 pounds. raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. raw materials on hand at march 31 totaled 3,741 pounds. 1. determine budgeted production for april, may, and june. 2. determine the budgeted cost of materials purchased for april, may, and june. (round your answers to 2 decimal places.)

Answers: 3

continue

You know the right answer?

A company is considering constructing a plant to manufacture a proposed new product. The land costs...