Mathematics, 18.06.2020 16:57, mazielynn84
Question 3 The sales and finance team of a car company is evaluating a new proposed luxury model of its brand that will require an investment of $1Billion in a new machine for car interior decoration. Demand for the company’s car is expected to begin at 100,000 units in year 1, with 10% annual growth thereafter. Production cost will be $35,000 per unit in the first year, and increase by a rate of either 3% or 5% per year as a result of wage increase. Selling price will start at $37,000 and increase by 4% of the production cost. The model will be phased out at the end of year 10. In addition, 0.3%, 2% and 1.5% of before tax profit per year will be spent on social corporate responsibility, commercial (including promotions) and recalls respectively. Assume taxes will be 30% of yearly profit and that inflation will remain at 0% per year throughout the 10 year of production. Also assume interest rate is expected to be 3% per year in the first 5 years and 5% in the last 5 years. a. Based on present worth analysis, is the proposed investment profitable if production cost increases by a rate of 3% per year as a result of wage increase? Justify your answer. (15 marks) b. Based on present worth analysis, is the proposed investment profitable if production cost increases by a rate of 5% per year as a result of wage increase? Justify your answer.
Answers: 2
Mathematics, 21.06.2019 22:00, Jasten
Set $r$ is a set of rectangles such that (1) only the grid points shown here are used as vertices, (2) all sides are vertical or horizontal and (3) no two rectangles in the set are congruent. if $r$ contains the maximum possible number of rectangles given these conditions, what fraction of the rectangles in set $r$ are squares? express your answer as a common fraction.
Answers: 1
Question 3 The sales and finance team of a car company is evaluating a new proposed luxury model of...
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