Nadine Chelesvig has patented her invention. She is offering a potential manufacturer two contracts for the exclusive right to manufacture and market her product. Plan A calls for an immediate single lump sum payment to her of $105,000. Plan B calls for an annual payment of $9,000 plus a royalty of $1.00 per unit sold. The remaining life of the patent is 10 years. Nadine uses a MARR of 10%/year. What must be the uniform annual sales volume of the product for Nadine to be indifferent between the contracts, based on an annual worth analysis? units Carry all interim calculations to 5 decimal places and then round your final answer to the nearest unit. The tolerance is ±10.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Nadine Chelesvig has patented her invention. She is offering a potential manufacturer two contracts for the exclusive right to
manufacture and market her product. Plan A calls for an immediate single lump sum payment to her of $105,000. Plan B calls for an
annual payment of $9,000 plus a royalty of $1.00 per unit sold. The remaining life of the patent is 10 years. Nadine uses a MARR of
10%/year. What must be the uniform annual sales volume of the product for Nadine to be indifferent between the contracts, based on
an annual worth analysis?
units
Carry all interim calculations to 5 decimal places and then round your final answer to the nearest unit. The tolerance is ±10.
Transcribed Image Text:Nadine Chelesvig has patented her invention. She is offering a potential manufacturer two contracts for the exclusive right to manufacture and market her product. Plan A calls for an immediate single lump sum payment to her of $105,000. Plan B calls for an annual payment of $9,000 plus a royalty of $1.00 per unit sold. The remaining life of the patent is 10 years. Nadine uses a MARR of 10%/year. What must be the uniform annual sales volume of the product for Nadine to be indifferent between the contracts, based on an annual worth analysis? units Carry all interim calculations to 5 decimal places and then round your final answer to the nearest unit. The tolerance is ±10.
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