Get Instant Help From 5000+ Experts For
question

Writing: Get your essay and assignment written from scratch by PhD expert

Rewriting: Paraphrase or rewrite your friend's essay with similar meaning at reduced cost

Editing:Proofread your work by experts and improve grade at Lowest cost

And Improve Your Grades
myassignmenthelp.com
loader
Phone no. Missing!

Enter phone no. to receive critical updates and urgent messages !

Attach file

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Guaranteed Higher Grade!
Free Quote
wave
Essay: Solar Panel Project Evaluation for Gladiators Inc. in the Philippines
Answered

Task
Show Out All The Calculation With Formula And Answer Provide a Reasoned Recommendation If The Company Should Proceed With The Solar Panel Project Based On All The Calculation.
Question 2 [15 marks]
Gladiators Inc. in the Philippines is considering the manufacture of solar panels for residential use. This project involves a capital investment of $220,000. The machine to make the panels has a three-year life and has a residual value of $40,000. The company uses the straight-line method of depreciation. Sales volumes of 6,000 units are forecast for the first year and expected to grow by 10 percent per annum over the life of the project. In the first year, the product has a selling price of $60 per unit and a variable cost of $36 per unit. Every year, these figures are expected to grow by 5 percent and 3 percent respectively. A one-time fixed overhead cost of $60,000 will be incurred at project commencement. A safety inspection will be due at the end of year 2. The relevant authority has quoted an inspection fee of $3,000. The project requires an initial working capital of $30,000, of which 80 percent is recoverable at the end of the project life. The cost of capital is 12 percent and the tax rate is 15 percent. 

Required: Provide a reasoned recommendation if the company should proceed with the solar panel project. requirement)

support
close