Mehmet Group wants to produce the M machines used in the casting industry in the Big Industry. The planned annual production and sales amount is 20,000 units and the sales price is calculated as "cost x 1.35". Information about this investment and production is given below. What is the sales price per unit of this project? What is the present and future value of the project's profit? TABLE: Workshop building and outbuildings 1.000.000 Usd Machine facilities 4,000,000 usd Staff is 380,000 usd and increasing by 40,000 usd every year Energy 180,000 usd and increasing by 15% every year Financing expenses 750,000 usd and decreasing by 10% each year Management and sales expenses decrease by 280,000 usd and 10,000 usd every year Raw material and auxiliary material 1.700 usd per unit Operation cost is 200,000 usd each year Major repair-maintenance is 150,000 usd in the 10th year Scrap value 8,000,000 usd in the 20th year Economic life 20 years Capital cost 25%

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Mehmet Group wants to produce the M
machines used in the casting industry in the
Big Industry. The planned annual production
and sales amount is 20,000 units and the
sales price is calculated as "cost x 1.35".
Information about this investment and
production is given below. What is the sales
price per unit of this project? What is the
present and future value of the project's
profit?
TABLE:
Workshop building and outbuildings
1.000.000 Usd
Machine facilities 4,000,000 usd
Staff is 380,000 usd and increasing by 40,000
usd every year
Energy 180,000 usd and increasing by 15%
every year
Financing expenses 750,000 usd and
decreasing by 10% each year
Management and sales expenses decrease by
280,000 usd and 10,000 usd every year
Raw material and auxiliary material 1.700 usd
per unit
Operation cost is 200,000 usd each year
Major repair-maintenance is 150,000 usd in
the 10th year
Scrap value 8,000,000 usd in the 20th year
Economic life 20 years
Capital cost 25%
Transcribed Image Text:Mehmet Group wants to produce the M machines used in the casting industry in the Big Industry. The planned annual production and sales amount is 20,000 units and the sales price is calculated as "cost x 1.35". Information about this investment and production is given below. What is the sales price per unit of this project? What is the present and future value of the project's profit? TABLE: Workshop building and outbuildings 1.000.000 Usd Machine facilities 4,000,000 usd Staff is 380,000 usd and increasing by 40,000 usd every year Energy 180,000 usd and increasing by 15% every year Financing expenses 750,000 usd and decreasing by 10% each year Management and sales expenses decrease by 280,000 usd and 10,000 usd every year Raw material and auxiliary material 1.700 usd per unit Operation cost is 200,000 usd each year Major repair-maintenance is 150,000 usd in the 10th year Scrap value 8,000,000 usd in the 20th year Economic life 20 years Capital cost 25%
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