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The Angel Reese Company is considering adding a new product to their line. The fixed...

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Accounting

The Angel Reese Company is considering adding a new product to their line. The fixed cost per year (listed below) includes depreciation on the cost of the equipment and the initial investment in equipment for the project was $15,000,000. The original investment is fully depreciable and has a life of 10 years. The tax rate is 25% and the cost of capital is 10%. The following projected information was estimated and expected for the first year of production:
Sales (500,000 units)
Variable costs
Fixed costs per year (includes depreciation and various OH items)
\table[[25,000,000
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