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4. In a safe process, it is planned to produce and sell annually 13 000 pieces of product. The unit sales price of the product is $20 and the total capital investment of the process is $1 200 000. The total production cost of the product including depreciation is $200 000/year. The income tax rate is 35%. Investigate whether this investment is feasible according to the Return of Investment Method (ROI).

4. In a safe process, it is planned to produce and sell annually 13 000 pieces of product. The unit sales price of the product is $20 and the total capital investment of the process is $1 200 000. The total production cost of the product including depreciation is $200 000/year. The income tax rate is 35%. Investigate whether this investment is feasible according to the Return of Investment Method (ROI).

Introduction to Chemical Engineering Thermodynamics
Introduction to Chemical Engineering Thermodynamics
8th Edition
ISBN:9781259696527
Author:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Chapter1: Introduction
Section: Chapter Questions
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4. In a safe process, it is planned to produce and sell annually 13 000 pieces of product. The unit sales price of the product is $20 and the total capital investment of the process is $1 200 000. The total production cost of the product including depreciation is $200 000/year. The income tax rate is 35%. Investigate whether this investment is feasible according to the Return of Investment Method (ROI).
Transcribed Image Text:4. In a safe process, it is planned to produce and sell annually 13 000 pieces of product. The unit sales price of the product is $20 and the total capital investment of the process is $1 200 000. The total production cost of the product including depreciation is $200 000/year. The income tax rate is 35%. Investigate whether this investment is feasible according to the Return of Investment Method (ROI).
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