Saturday, March 19, 2016

A company wants to build a new factory for increased capacity. Using thfe net present value method of capital budgeting, determine the proposals appropriateness and economic viability . building a new factory will increase capacity by 30% the current capacity is 10 million of sales with 5% profit margin factory costs 10 million to build new capacity will meet the companys needs for 10 years factory is worth 14 million over 10 years

A company wants to build a new factory for increased capacity. Using thfe net present value method of capital budgeting, determine the proposals appropriateness and economic viability . building a new factory will increase capacity by 30% the current capacity is 10 million of sales with 5% profit margin factory costs 10 million to build new capacity will meet the companys needs for 10 years factory is worth 14 million over 10 years

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