SPONDING OPERATIONS AND ALL THE RESULTS. Instructions An evaluation is needed for a sock production project that requires an initial investment of $50,000,000°, of which 80% corresponds to depreciable fixed assets, and 20% to working capital. The unit production cost is $10,000°°, and a unit sale value of $13,500°° is estimated. The market study revealed a potential demand of 20,000 units for the first year. The fixed assets are depreciated straight-line over a useful life of 10 years. Operational expenses are estimated at $4,000,000° for the first year. The fixed costs amount to $10,000,000° for the first year. The following increments are estimated: sales increase by 2% annually, variable unit cost by 3% annually, unit sale price by 3% annually, operational expenses by 6%
PLEASE ANSWER BOTH POINTS (1 AND 2), PROPERLY BREAKDOWN POINT NUMBER 2 WITH THE CORRESPONDING OPERATIONS AND ALL THE RESULTS.
Instructions
An evaluation is needed for a sock production project that requires an initial investment of $50,000,000°, of which 80% corresponds to
1. Build the project's cash flow.
2. Calculate the
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