•
Company Alfa has invested 300 CU in developing a new product
•
Sales are expected to be 750 CU per year for the following 5 years
•
Variable costs: 450 CU per year
•
Fixed costs: 200 CU per year. Note that the fixed costs consist of 160 CU as additional fixed costs and 40 CU relating to the existing business which will be apportioned to the new product.
•
Purchase of a new machine to produce the new product: 520 CU (purchased and paid immediately)
•
Machine's salvage value: 100 CU. Depreciation is on a straight line basis
•
Cost of capital: 12%
•
Calculate the NPV for the product.
Last reply 16 hours ago
A-Level Business Study Group 2023-2024Last reply 1 day ago
Edexcel A Level Business Paper 1 (9BS0 01) - 14th May 2024 [Exam Chat]Last reply 1 day ago
Edexcel A Level Business Paper 3 (9BS0 03) - 6th June 2024 [Exam Chat]Last reply 5 days ago
Business a-level 2024 predictions helpLast reply 1 week ago
How I get an A in A-Level Business StudiesPosted 2 weeks ago
Edexcel A Level Business Paper 2 (9BS0 02) - 21st May 2024 [Exam Chat]Posted 2 weeks ago
AQA A Level Business Paper 1 (7132/1) - 14th May 2024 [Exam Chat]Last reply 1 month ago
AQA A Level Business Paper 3 (7132/3) - 14th June 2023 [Exam Chat]Last reply 1 month ago
Edexcel A Level Business Paper 1 (9BS0 01) - 23rd May 2023 [Exam Chat]Last reply 2 months ago
AQA GCSE Business Paper 1 (8132/1) - 18th May [Exam Chat]Last reply 2 months ago
Edexcel Business GCSE Paper 1 (1BS0/01) - 18th May 2023 [Exam Chat]Last reply 3 months ago
How to Structure 20 marker Business Edexcel A- levelPosted 7 months ago
Topic Questions for business studies As LEVEL EdexcelLast reply 7 months ago
Edexcel A Level Business Paper 3 (9BS0 03) - 14th June 2023 [Exam Chat]Last reply 7 months ago
Edexcel AS level unit-1 and unit-2 business notesLast reply 10 months ago
AQA A Level Business Paper 1 (7132/1) - 23rd May 2023Last reply 10 months ago
how to answer a 9 marker qurstionLast reply 16 hours ago
A-Level Business Study Group 2023-2024Last reply 1 day ago
Edexcel A Level Business Paper 1 (9BS0 01) - 14th May 2024 [Exam Chat]Last reply 1 day ago
Edexcel A Level Business Paper 3 (9BS0 03) - 6th June 2024 [Exam Chat]Last reply 5 days ago
Business a-level 2024 predictions helpLast reply 1 week ago
How I get an A in A-Level Business StudiesPosted 2 weeks ago
Edexcel A Level Business Paper 2 (9BS0 02) - 21st May 2024 [Exam Chat]Posted 2 weeks ago
AQA A Level Business Paper 1 (7132/1) - 14th May 2024 [Exam Chat]Last reply 1 month ago
AQA A Level Business Paper 3 (7132/3) - 14th June 2023 [Exam Chat]Last reply 1 month ago
Edexcel A Level Business Paper 1 (9BS0 01) - 23rd May 2023 [Exam Chat]Last reply 2 months ago
AQA GCSE Business Paper 1 (8132/1) - 18th May [Exam Chat]Last reply 2 months ago
Edexcel Business GCSE Paper 1 (1BS0/01) - 18th May 2023 [Exam Chat]Last reply 3 months ago
How to Structure 20 marker Business Edexcel A- levelPosted 7 months ago
Topic Questions for business studies As LEVEL EdexcelLast reply 7 months ago
Edexcel A Level Business Paper 3 (9BS0 03) - 14th June 2023 [Exam Chat]Last reply 7 months ago
Edexcel AS level unit-1 and unit-2 business notesLast reply 10 months ago
AQA A Level Business Paper 1 (7132/1) - 23rd May 2023Last reply 10 months ago
how to answer a 9 marker qurstion