Question 8
Below is an Income and cash flow statements for a new product model that management has approved. (If there are errors or oversights, that is their problem, not yours). Both question parts a and b should start from the original data. The cells with a green background contain the original values and are shown only to assist you in reverting back to the original values if needed.
a Note that the present worth is negative. Determine the Investment amount that would achieve the MARR. Describe how you determined this.
b What would be the present worth if the price was increased to $37.99 in all years and this resulted in a 5% decline in the “Sales Quantity Forecast”. (note that years 2-6 are all linked to year 1). Describe how you determined this. Question 8
Below is an Income and cash flow statements for a new product model that management has approved. (If there are errors or oversights, that is their problem, not yours). Both question parts a and b should start from the original data. The cells with a green background contain the original values and are shown only to assist you in reverting back to the original values if needed.
a Note that the present worth is negative. Determine the Investment amount that would achieve the MARR. Describe how you determined this.
b What would be the present worth if the price was increased to $37.99 in all years and this resulted in a 5% decline in the “Sales Quantity Forecast”. (note that years 2-6 are all linked to year 1). Describe how you determined this.
