guilera Acoustics, Inc. (AAI) projects unit sales for a new seven-octave voice emulation implant as follows: Year 1 Year 2 Year 3 Year 4 Year 5 Unit sales 81,000 94,000 108,000 103,000 84,000
guilera Acoustics, Inc. (AAI) projects unit sales for a new seven-octave voice emulation implant as follows: Year 1 Year 2 Year 3 Year 4 Year 5 Unit sales 81,000 94,000 108,000 103,000 84,000
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 19P
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Question
Aguilera Acoustics, Inc. (AAI) projects unit sales for a new seven-octave voice emulation implant as follows: | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Unit sales | 81,000 | 94,000 | 108,000 | 103,000 | 84,000 | ||
Production of the implants will require $1,600,000 investment in working capital. The units are priced at $380 each, cost of goods sold (COGS) is $265 per unit, and selling, general and administration (SGA) expenses are $1,500,000 per year. The equipment needed to begin production has an installed cost of $21,000,000 and will be |
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a) What is the project's |
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b) What is the project's IRR? | |||||||
c) What is the project's MIRR? |
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