!Required informationA process for producing the mosquito repellant Deet has an initial investment of $165,000 with annual costs of $43,000.Income is expected to be $90,000 per year.What is the annual breakeven production quantity for both payback periods if net profit, that is, income minus cost, is $10 per gallon?(Consider the rounded values of years calculated in part a. Also, round your answer to the nearest integer.)When i = 0%, the annual breakeven production quantity is determined to beWhen i = 12%, the annual breakeven production quantity is determined to begallons per year.gallons per year.

As per the given information:Initial investment - $165,000Annual costs - $43,000Income - $93,000

Answered: Required information A process for…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5PA: Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated...

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A process for producing the mosquito repellant Deet has an initial investment of $200,000 with annual costs of $50,000. Income is expected to be $90,000 per year. (a) What is the payback period at i = 0% per year? A i = 12% per year? (Note: Round your answers to the nearest integer.) (b) What is the annual breakeven production quantity for both payback periods (determined above) if net profit, that is, income minus cost, is $10 per gallon?
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