Required information A process for producing the mosquito repellant Deet has an initial investment of $165,000 with annual costs of $43,000. Income is expected to be $90,000 per year. What is the annual breakeven production quantity for both payback periods if net profit, that is, income minus cost, is $10 per gallon? Consider the rounded values of years calculated in part a. Also, round your answer to the nearest integer.) When /= 0%, the annual breakeven production quantity is determined to be When i 12%, the annual breakeven production quantity is determined to be gallons per year. gallons per year.
Required information A process for producing the mosquito repellant Deet has an initial investment of $165,000 with annual costs of $43,000. Income is expected to be $90,000 per year. What is the annual breakeven production quantity for both payback periods if net profit, that is, income minus cost, is $10 per gallon? Consider the rounded values of years calculated in part a. Also, round your answer to the nearest integer.) When /= 0%, the annual breakeven production quantity is determined to be When i 12%, the annual breakeven production quantity is determined to be gallons per year. gallons per year.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Required information
A process for producing the mosquito repellant Deet has an initial investment of $165,000 with annual costs of $43,000.
Income is expected to be $90,000 per year.
What is the annual breakeven production quantity for both payback periods if net profit, that is, income minus cost, is $10 per gallon?
(Consider the rounded values of years calculated in part a. Also, round your answer to the nearest integer.)
When i = 0%, the annual breakeven production quantity is determined to be
When i = 12%, the annual breakeven production quantity is determined to be
gallons per year.
gallons per year.
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