Uncertainty surrounding the cash flows of this project

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Reference no: EM131089302

1. Using the following assumptions, develop a budget in pesos and dollars for this project:

Potential customers: 250,000

Price per unit: $ 5.50

Variable cost per unit: $ 2.50

Shipping and customs expenses: 10% per unit sold.

Annual lease expense: $150,000

Other annual fixed expenses: $40,000

Employee cost: $50,000

2. Explain why there is uncertainty surrounding the cash flows of this project.

Reference no: EM131089302

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