Projects unit sales for seven-octave voice emulation implant

Assignment Help Operation Management

Reference no: EM131033561

Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year Unit Sales 1 90,000 2 103,000 3 117,000 4 112,000 5 93,000 Production of the implants will require $1,690,000 in net working capital to start and additional net working capital investments each year equal to 15 percent of the projected sales increase for the following year. Total fixed costs are $1,590,000 per year, variable production costs are $310 per unit, and the units are priced at $425 each. The equipment needed to begin production has an installed cost of $21,900,000. Because the implants are intended for professional singers, this equipment is considered industrial machinery and thus qualifies as seven-year MACRS property. In five years, this equipment can be sold for about 20 percent of its acquisition cost. AAI is in the 30 percent marginal tax bracket and has a required return on all its projects of 18 percent. MACRS schedule What is the NPV of the project?

Reference no: EM131033561

Questions Cloud

Wright report style regarding method-medication error rates : Wright a Report style regarding a method used in health informatics evaluation. Analysis of clinical indicators (eg. medication error rates, test ordering patterns, patient outcomes) Briefly define and describe the selected evaluation method. What ty..

Discuss the use of technology licensing as primary revenue : Discuss the use of technology licensing as a primary revenue driver in an entrepreneurial enterprise. Are there any public companies (other than Tessera, which had an IPO in 2003) that rely on licensing as their principal revenue source? What are som..

Project leader-define beliefs-values and critical factors : The project leader must orient those participating in the design process steps and expand their competencies to engage in various phases. List each of these phases. Also, define beliefs, values, and critical factors. Understanding the healing experie..

A literature review is critical evaluation of the themes : A literature review is a critical evaluation of the themes, issues, and arguments connected to a research topic obtained from peer reviewed literature. se the ACM Digital Library to locate three peer-reviewed articles published within the past 5 year..

Projects unit sales for seven-octave voice emulation implant : Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year Unit Sales 1 90,000 2 103,000 3 117,000 4 112,000 5 93,000 Production of the implants will require $1,690,000 in net working capital to st..

Acceptable way to respond to a risk : Stakeholders are people who have an interest or ___________ with the project. Which in the following is not an acceptable way to respond to a risk?

Milestones are best defined : When estimating resources, a good project manager will consider __________. A project manager can estimate how long an activity will take by __________. Milestones are best defined as ___________.

Leader must orient participating in design process steps : The project leader must orient those participating in the design process steps and expand their competencies to engage in various phases. List each of these phases. Also, define beliefs, values, and critical factors. Understanding the healing experie..

The critical path has float : The __________ path through a project is the critical path. The critical path has a float that is __________.

User Account

All Pages