Answer Happy

a 03 ABC stoeplant industry plans to manufacture a product. The product needs a special component. The industry has reviewed that the special component can be produced in the plant or bought in Anvestment is required to start the production of the component for which two mutually exclusive projects A and representing different production processes are available The stomative options to buy in from another company representing project. The details of projects A and B are given in Table 3. Using the information from bin and Discount Cash Flow enteria, calcutule Pay Back Period Pees. Account Role of Retum (ARR), Net Present Value (NPV) and internal hain Relum (IRR) for project A & Project By the industry plans to save the unit cost oro 390, 78 Marks Marking Rubrica: Back Period (PSP) for the project A & project 3 - 4 Marks Account Rate of Relum (ARR) for project A & project 8 - 4 Marks Net Present Value (NPV) for the project project - Marks, and internal Rule Return CIRR) for the project A & project 8 - 12 Marks Uso the annual cost data from abis determine which project incurs loss cost the industry considers producina 2.500 unts per year 14 Marks on using the table a determine the Break-Even quently and margin of safety units and value in the company cells. 8.000mb of new product per year at a price of RO 50 per und Marks 4 Table 3 Spu F Description Capital RON Levers Sales Quamuiy units per year Salaries pery (ROL Other fixed costs Y ROI Wages per year.RO Cast of materialer year (RO) Other vanable costs per year (RO) Scrap value at the end of the year (RO) Cost of capital (%) Project A 360 5.SO 15 10,000 45 000 40 000 70.000 226, 390 35,000 34,880 Project 453,240 15 12,000 50.000 85000 10.000 290, 750 40,000 41,530 Beaen Sale = Beexspu mangin of safety a Project A O fo=40+70+ 226 A 19 Fe = 85, +80, 298 vent Senale 10 16