(CLO-6) A company would like to open a factory that produces women dress. The company prepared a business plan that stat
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(CLO-6) A company would like to open a factory that produces women dress. The company prepared a business plan that stat
company would like to open a factory that produces women dress. The company prepared a business plan that states the following: The operation and maintenance (O&M) costs will start from the first year The revenue resulting from selling the products will start from year 2 The table below shows the details of the costs and revenues associated with opening this new factory. However, the business plan states also that the company should gain a revenue (X) in the first year in order to make the project marginally accepted with a MARR of 12% per year. This Revenue can be generated by leasing a space in the factory on monthly basis for one year only with a yearly nominal interest rate of 12% compounded monthly Task, Year 10 15 Investment O&M Revenue Market Value 32,000 800 600 300 900 500 3.500 3.700 3.600 3.600 3.900 3.900 3,600 1,000 500 x 700 What should be the minimum monthly amount resulting from renting the factory space? 1,000 4.000 5,410 I
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