THEN UPLOAD YOUR ANSWERS LATER (NOT BEYOND 11:59 PM TODAY) ABC company is considering constructing a plant. The land costs 15,000,000 pesos, the building costs 30,000,000 pesos, the equipment costs 12,500,000 pesos and 5,000,000 working a capital is required. At the end of 12 years, the land can be sold for 25,000,000 pesos, the building for 12,000,000 pesos and equipment for 250,000 and all the working capital recovered. The annual disbursements for labor, materials and all other expenses are estimated to cost 23,750,000 pesos. If the company requires a minimum return of 25%, what should be the minimum annual sales for 12 years to justify the investment? ANS (39,748,560 pesos) USE ANY METHOD YOU WANT TO TRY.
THEN UPLOAD YOUR ANSWERS LATER (NOT BEYOND 11:59 PM TODAY) ABC company is considering constructing a plant. The land costs 15,000,000 pesos, the building costs 30,000,000 pesos, the equipment costs 12,500,000 pesos and 5,000,000 working a capital is required. At the end of 12 years, the land can be sold for 25,000,000 pesos, the building for 12,000,000 pesos and equipment for 250,000 and all the working capital recovered. The annual disbursements for labor, materials and all other expenses are estimated to cost 23,750,000 pesos. If the company requires a minimum return of 25%, what should be the minimum annual sales for 12 years to justify the investment? ANS (39,748,560 pesos) USE ANY METHOD YOU WANT TO TRY.
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
Related questions
Question
Please show the solution to the corresponding answer stated in the problem.
Transcribed Image Text:PRACTICE PROBLEM:
THEN UPLOAD YOUR ANSWERS LATER (NOT BEYOND 11:59 PM TODAY)
ABC company is considering constructing a plant. The land costs 15,000,000 pesos, the building
costs 30,000,000 pesos, the equipment costs 12,500,000 pesos and 5,000,000 working a capital
is required. At the end of 12 years, the land can be sold for 25,000,000 pesos, the building for
12,000,000 pesos and equipment for 250,000 and all the working capital recovered. The annual
disbursements for labor, materials and all other expenses are estimated to cost 23,750,000
pesos. If the company requires a minimum return of 25%, what should be the minimum annual
sales for 12 years to justify the investment? ANS (39,748,560 pesos)
USE ANY METHOD YOU WANT TO TRY.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education