Investment appraisal and analysis


suppose you are planning to buy a new machine POPO CORN machine. The machine will cost $450,000 and would last for three years and have salvage value zero.
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year 1 2 3
Demand (units) 20,000 40,000 35,000
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selling price is expected to be $10 per unit and the variable cost of prodduction is expected to be $ 5 per unit.Incremetal annual fixed production overhead of $12,000 per year. selling price 5% ,variable cost of production 6% and fixed production overhead by 8%. Apply 10% discount rate for this activity. Calculate NPV and IRR?

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Corporate Finance: Investment appraisal and analysis
Reference No:- TGS0558557

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