Question 1 A toy manufacturing company is selling pokemon figures in Latin America, generating annual revenues of $50000. However, due to a new cartoon planned to be launched in 3 years from now, the revenues are
Question 1 A toy manufacturing company is selling pokemon figures in Latin America, generating annual revenues of $50000. However, due to a new cartoon planned to be launched in 3 years from now, the revenues are
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![A toy manufacturing
company is selling pokemon figures in Latin
America, generating annual revenues of $50000.
Question 1
However, due to a new cartoon planned to be
launched in 3 years from now, the revenues are
expected to increase by $10000 each year for 4
consecutive years, after which the revenues will
continue at the original level for another 4 years.
Then the company is expected to close all its
operations and sell all its available assets. The
final selling operation is expected to generate
$34000 including the building and all the
machines. The operating cost of the factory is
$28000 per year . If the MARR=12% answer the
following:
а)
What is the Future Worth of this
company?
Instructions:
Use 4 digits in your calculations and
reporting the answers.
Do not write commas or apostrophes.
Do not write $ (dollar sign) or any other
symbol, just write the number.
FW=$
b) What is your decision? Do you change your
decision if MARR decreases? Explain.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F07588efd-6ff2-4b40-ad92-1a05af25c2d8%2F007726dc-4f23-4f5a-b48b-df7b58ca8afe%2Fl8wld7n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A toy manufacturing
company is selling pokemon figures in Latin
America, generating annual revenues of $50000.
Question 1
However, due to a new cartoon planned to be
launched in 3 years from now, the revenues are
expected to increase by $10000 each year for 4
consecutive years, after which the revenues will
continue at the original level for another 4 years.
Then the company is expected to close all its
operations and sell all its available assets. The
final selling operation is expected to generate
$34000 including the building and all the
machines. The operating cost of the factory is
$28000 per year . If the MARR=12% answer the
following:
а)
What is the Future Worth of this
company?
Instructions:
Use 4 digits in your calculations and
reporting the answers.
Do not write commas or apostrophes.
Do not write $ (dollar sign) or any other
symbol, just write the number.
FW=$
b) What is your decision? Do you change your
decision if MARR decreases? Explain.
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