Sales was estimated at 80,000 pieces annually with a rate of 6 pu. Its variable mfg costs are 2.50 pu with S&D and general expenses related to production is 59,000 on annual basis. Its fixed manufacturing costs (excluding depreciation) at 45,000 on annual basis. Investment made is 350,000 with related to various moulds & equipment. The equipment have a 3 year life with ending salvage value of 20,000 where it was followed SLM depreciation.The rate of tax will be at 40%. Required: a.Estimated increase in annual level of net income from the planned manufacture and sale of product b.Annual net cash flows which was expected from the project. c.With the assumption of discounted annual rate of 15 percent (Round your "PV factors" to 3 decimal places, payback period to the nearest tenth of a year and the return on average investment to the nearest tenth of a percent. Round net present value to the nearest whole amount.) Payback period ______ years Return in average ______ % Net present value ______
Sales was estimated at 80,000 pieces annually with a rate of 6 pu. Its variable mfg costs are 2.50 pu with S&D and general expenses related to production is 59,000 on annual basis. Its fixed
Investment made is 350,000 with related to various moulds & equipment. The equipment have a 3 year life with ending salvage value of 20,000 where it was followed SLM depreciation.The rate of tax will be at 40%.
Required:
a.Estimated increase in annual level of net income from the planned manufacture and sale of product
b.Annual net
c.With the assumption of discounted annual rate of 15 percent (Round your "PV factors" to 3 decimal places, payback period to the nearest tenth of a year and the
Payback period ______ years
Return in average ______ %
Net present value ______
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