Techie, Inc. may invest $5 million in a new Star Communicator project. Annual production costs and revenues are projected to be $2 million and $1.5 million, with each growing at 2.0% and 4.0%, respectively

At an interest rate of 5.5%, what is the approximate investment year that will maximize value? (Use static analysis.)
A) Year 20
B) Year 15
C) Year 10
D) Year 5


A

Business

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Wang Co. manufactures and sells a single product that sells for $450 per unit; variable costs are $270 per unit. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the current margin of safety in dollars.

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Business