Our accounting professor gave us this assignment with very
little guidance. I would like to see if my answers match with you
guys, thank you!
Evaluate these 3 investment opportunities:
Product 1
Product 2
Product 3
Annual Demand (units)
6,350,000
14,000
9,100
Price (per unit)
$35.00
$42,000
$18,380
Variable Costs (per unit)
$21.40
$28,000
$10,980
Fixed Manufacturing Costs
$7,500,000
$4,350,000
$4,890,000
Selling Expenses (% of Sales Revenue)
10%
8%
5%
Upfront Costs
$165,000,000
$448,000,000
$236,000,000
Salvage Value
$0
$0
$50,000,000...