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anonymous
 one year ago
Question below! Please help :)
anonymous
 one year ago
Question below! Please help :)

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anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Silver Bear Golf (SBG) is a manufacturer of top quality golf clubs with a specialty of putters. Currently, each putter they sell brings in $280 of revenue at a cost of $200. This past year, they sold 900 putters and they expect this number to grow each year by 13.5% until this model becomes obselete after 15 more years. The foreman at the SBG factory recently brought to your attention a new technology that could lower the cost of production. This technology requires an upfront fixed investment of $205,000 and has the capacity to produce all the putters you want to sell per year at a unit cost of $160. There is no increased working capital need due to this new technology, and no value of the machine/technology after 15 years. What is the NPV of investing in the new technology? Ignore taxes and assume a discount rate of 7.0%. (Hint: Think incrementally; the difference between the world without and with this new technology! Also, ignoring taxes will be a big help if you think right.

amistre64
 one year ago
Best ResponseYou've already chosen the best response.1sorry, but that just reads as gibberish to me at the moment.

amistre64
 one year ago
Best ResponseYou've already chosen the best response.1units sold over 15 years would be: N = 900(1+r)^(15) 200N is the total cost, 280N is the total revenue .. 80N is the total profit without the tech

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Thanks! I still don't fully understand, but thanks for trying.
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