Download
1 / 3
30 likes | 61 Views
FOR MORE CLASSES VISIT<br>tutorialoutletdotcom <br><br>The firm is concerned that inflation in the cost of raw materials will have an adverse effect on the project's cash flows. Specifically. the firm expects the cost per unit (wt-rich<br>is currently 50.89] will Iise at a rate of 12 percent annually over the next three years.
E N D
FIN 302 evaluating a new chemical compound • FOR MORE CLASSES VISIT • tutorialoutletdotcom • The firm is concerned that inflation in the cost of raw materials will have an adverse effect on the project's cash flows. Specifically. the firm expects the cost per unit (wt-richis currently 50.89] will Iise at a rate of 12 percent annually over the next three years. The per—u nit selling price is currently $0.95 and this price is expected to rise at ameager 1 percent annual rate over the next three years. if Carlyle expects to sell 5.5, 6.3, and 8 million units for the next three yeam, respectively, what is yourestimate of the gross profits to the firm?
