You are considering a new product launch. The equipment for the project will cost $1,500,000, have a three year life and a $300,000 salvage value. Depreciation is straight line to zero. Sales are projected at 500 units per year with a per unit price of $15,000 and variable cost per unit of $13,000. Fixed costs are estimated to be $400,000 per year. The project will require an initial investment of $50,000 in net working capital, which is recovered at the end of the project. The required return is 10% and the relevant tax rate is 25%. Compute the IRR of the project.

c.

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hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answer; monopolistic competition;

answer; windows embedded;