Question 1 A toy manufacturing company is selling pokemon figures in Latin America, generating annual revenues of $50000. However, due to a new cartoon planned to be launched in 3 years from now, the revenues are

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Engineering Economics Please answer a and b, thank you
A toy manufacturing
company is selling pokemon figures in Latin
America, generating annual revenues of $50000.
Question 1
However, due to a new cartoon planned to be
launched in 3 years from now, the revenues are
expected to increase by $10000 each year for 4
consecutive years, after which the revenues will
continue at the original level for another 4 years.
Then the company is expected to close all its
operations and sell all its available assets. The
final selling operation is expected to generate
$34000 including the building and all the
machines. The operating cost of the factory is
$28000 per year . If the MARR=12% answer the
following:
а)
What is the Future Worth of this
company?
Instructions:
Use 4 digits in your calculations and
reporting the answers.
Do not write commas or apostrophes.
Do not write $ (dollar sign) or any other
symbol, just write the number.
FW=$
b) What is your decision? Do you change your
decision if MARR decreases? Explain.
Transcribed Image Text:A toy manufacturing company is selling pokemon figures in Latin America, generating annual revenues of $50000. Question 1 However, due to a new cartoon planned to be launched in 3 years from now, the revenues are expected to increase by $10000 each year for 4 consecutive years, after which the revenues will continue at the original level for another 4 years. Then the company is expected to close all its operations and sell all its available assets. The final selling operation is expected to generate $34000 including the building and all the machines. The operating cost of the factory is $28000 per year . If the MARR=12% answer the following: а) What is the Future Worth of this company? Instructions: Use 4 digits in your calculations and reporting the answers. Do not write commas or apostrophes. Do not write $ (dollar sign) or any other symbol, just write the number. FW=$ b) What is your decision? Do you change your decision if MARR decreases? Explain.
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