Acompany is considering constructing a plant to manufacture a proposed new product. the land costs $350 comma 000350,000, the building costs $700 comma 000700,000, the equipment costs $300 comma 000300,000, and $150 comma 000150,000 additional working capital is required. it is expected that the product will result in sales of $750 comma 000750,000 per year for 1010 years, at which time the land can be sold for $350 comma 000350,000, the building for $400 comma 000400,000, and the equipment for $50 comma 00050,000. all of the working capital would be recovered at the eoy 1010. the annual expenses for labor, materials, and all other items are estimated to total $500 comma 000500,000. if the company requires a marr of 1717% per year on projects of comparable risk, determine if it should invest in the new product line. use the aw method.

What two things do you consider when evaluating the time value of money

Suppose that a firm is considering moving from a batch process to an assembly-line process to better meet evolving market needs. what concerns might the following functions have about this proposed process change: marketing, finance, human resources, accounting, and information systems?

University hero is considering expanding operations beyond its healthy sandwiches. jim axelrod, vice president of marketing, would like to add a line of smoothies with a similar health emphasis. each smoothie would include two free health supplements such as vitamins, antioxidants, and protein. jim believes smoothie sales should fill the slow mid-afternoon period. adding the line of smoothies would require purchasing additional freezer space, machinery, and equipment. jim provides the following projections of net sales, net income, and average total assets in support of his proposal. sandwichesonly sandwiches and smoothies net sales $ 750,000 $ 1,350,000 net income 120,000 210,000 average total assets 350,000 750,000 return on assetschoose numerator ÷ choose denominator = return on assets÷ = return on assets÷ = profit margin÷ = profit margin÷ = asset turnover÷ = asset turnover÷ = times