Business, 20.09.2020 17:01 fangirl2837
A process has been designed to produce a new product P. Based on your design calculations, the FCI of the process is estimated to be $500 MM. The useful life period of the process is taken to be 10 years. The salvage value of the process is assumed to be 10% of the FCI. Other fixed charges for the process (property taxes, insurance, salaries, etc.) are $30 MM/year. The maximum production capacity of the process is 300,000 tonne/year of product P. The operating cost of the process is $250/tonne. It is desired to break even at a production rate of 33.3% of the maximum process capacity. What should be the selling price of the product?+
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A process has been designed to produce a new product P. Based on your design calculations, the FCI o...
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