sports clotnes, is considering adding a line of skirts and jackets. The production would take place in a part of its faciory that is currently not being used. first output would be avallable in tume The following information is available. Answer parts (a) through (d). New Product Line Information First cost in 2020 (S) Planned output (units/year) Observed, current dollar MARR before tax Study period 15,500,000 320,000 0.25 iyears Year 2020 Prices (S/unit) Materials 11 Labour 8.75 Output 35 a. What is the real internal rate of return? (This is most easily done with a spreadsheet.) The real internal rate of return is about percent. (Round to one decimal place as needed.) b. What inflation rate will make the real MARR equal to the real internal rate of return? The inflation rate would need to be about percent. (Round to two decimal places as needed.) c. Calculate the present worth of the project under three possible future inflation rates. Assume the inflation rate will be 1 percent, 2 percent, or 3 percent per year.

sports clotnes, is considering adding a line of skirts and jackets. The production would take place in a part of its faciory that is currently not being used. first output would be avallable in tume The following information is available. Answer parts (a) through (d). New Product Line Information First cost in 2020 (S) Planned output (units/year) Observed, current dollar MARR before tax Study period 15,500,000 320,000 0.25 iyears Year 2020 Prices (S/unit) Materials 11 Labour 8.75 Output 35 a. What is the real internal rate of return? (This is most easily done with a spreadsheet.) The real internal rate of return is about percent. (Round to one decimal place as needed.) b. What inflation rate will make the real MARR equal to the real internal rate of return? The inflation rate would need to be about percent. (Round to two decimal places as needed.) c. Calculate the present worth of the project under three possible future inflation rates. Assume the inflation rate will be 1 percent, 2 percent, or 3 percent per year.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 1PB: Variety Artisans has a bottleneck in their production that occurs within the engraving department....

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