00,000, the building costs $600,000, the uipment costs $250,000, and $100,000 additiona rking capital is required. It is expected that the duct will result in sales of $750,000 per year for 1 ars, at which time the land can be sold for 00,000, the building for $350,000, the equipmen $50,000, and the working capital of $100,000 w recovered. The company is expecting to sell 000 units of the product every year. The annual benses for labor, materials, and all other items are imated to total $475,000. If the company requires MARR of 8% per year, determine the profit/unit of - new product.
00,000, the building costs $600,000, the uipment costs $250,000, and $100,000 additiona rking capital is required. It is expected that the duct will result in sales of $750,000 per year for 1 ars, at which time the land can be sold for 00,000, the building for $350,000, the equipmen $50,000, and the working capital of $100,000 w recovered. The company is expecting to sell 000 units of the product every year. The annual benses for labor, materials, and all other items are imated to total $475,000. If the company requires MARR of 8% per year, determine the profit/unit of - new product.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 28P: Friedman Company is considering installing a new IT system. The cost of the new system is estimated...
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