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Suppose that unit price is $50 and unit cost is $15. Calculate the NPV with...

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Accounting

Suppose that unit price is $50 and unit cost is $15. Calculate the NPV with 15% interest rate for 5 years (useful life) for the two plans given in the following table and evaluate the results.

Variable Plan 1 Plan 2 Initial Cost 100,000 120,000 Unit demand 1,600 2,000 Fixed cost ($) 11,000 10,000 Salvage value ($) 30,000 40,000

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