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TMAN625 course Midterm
  • From Business, Finance
  • Due on 23 Apr, 2016 08:21:00
  • Asked On 23 Apr, 2016 12:25:30
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The new-product department of Telephone Accessories, Inc. (TAI) has researched a new multipurpose charging station.   Further development (depreciable) to have it ready to sell is estimated at $650,000. Marketing has estimated that it could be sold at a price of $66 and that 80,000 units could be sold each year (in all years). A marketing budget for this new product would need to be $2,000,000 in year 1 and $1,000,000 in the remaining years. A vendor has been found in China who would produce these at an estimated cost of $47.00 each.  For this initial analysis, working capital can be ignored and the salvage value would be zero. Is this product financially feasible for the above financial estimates? Use a MARR of 15%. income and capital gains tax rate of 20%, a time horizon of 4 years and straight line depreciation? 

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TMAN625 course Midterm
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  • Submitted On 24 Apr, 2016 08:10:43
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The new-product department of Telephone Accessories, Inc. (TAI) has researched a new multipurpose charging station. Furth...
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