entury Foods, a producer of frozen meat products, is considering a new plant near Essen, Germany, for its sausage rolls and frozen meat pies. The company has estimates of production costs and selling prices in the first year. It expects the real value of perating costs per unit to fall because of improved operating methods. It also expects competitive pressures to cause the real value of product prices to fall. The following data are available. Answer parts (a) through (d). Century Food Plant Data Output price in 2021 (E/unit) 21 16.5 Operating cost in 2021 (€/unit) Planned output rate (boxes/year) Fall in real output price Fall in real operating cost per box First cost in 2020 (€) Study period Current euro MARR before tax 279,000 1.5% per year 1% per year 7,300,000 10 years 20% Accume there is zero inflatio 2020 of the project? LIse spreadsheet to find the nresent worth oresent worth

entury Foods, a producer of frozen meat products, is considering a new plant near Essen, Germany, for its sausage rolls and frozen meat pies. The company has estimates of production costs and selling prices in the first year. It expects the real value of perating costs per unit to fall because of improved operating methods. It also expects competitive pressures to cause the real value of product prices to fall. The following data are available. Answer parts (a) through (d). Century Food Plant Data Output price in 2021 (E/unit) 21 16.5 Operating cost in 2021 (€/unit) Planned output rate (boxes/year) Fall in real output price Fall in real operating cost per box First cost in 2020 (€) Study period Current euro MARR before tax 279,000 1.5% per year 1% per year 7,300,000 10 years 20% Accume there is zero inflatio 2020 of the project? LIse spreadsheet to find the nresent worth oresent worth

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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