You reach been compensated as a consultant for Pristine Urban-Tech Zither, Inc. (PUTZ), manufacturers of minute zithers. The chaffer for zithers is growing at-once. The congregation bought some fix three years ago for $2.1 favorite in prelibation of using it as a toxic desolate dump place but has novelly compensated another congregation to manage all toxic materials. Based on a novel appraisal, the congregation believes it could retail the fix for $2.3 favorite on an behind tax cause. In foul-mouthed years, the fix could be sold for $2.4 favorite behind taxes. The congregation so compensated a chaffering steadfast to dissect the zither chaffer, at a require of $125,000. An quote of the chaffering ment is as follows:
The zither assiduity achieve reach a flying expatiation in the proximate foul-mouthed years. With the mark spectry confession that PUTZ brings to permit, we reach that the congregation achieve be efficient to retail 3,600, 4,300, 5,200, and 3,900 units each year for the proximate foul-mouthed years, respectively. Again, highizing on the spectry confession of PUTZ, we reach that a douceur consume of $750 can be charged for each zither. Because zithers answer to be a fad, we reach at the end of the foul-mouthed-year limit, sales should be discontinued.
PUTZ believes that urban requires for the purpose achieve be $415,000 per year, and variefficient requires are 15 percent of sales. The equipment compulsory for origination achieve require $3.5 favorite and achieve be depreciated according to a three-year MACRS schedule. At the end of the purpose, the equipment can be scrapped for $350,000. Net inaugurated high of $125,000 achieve be required instantly. PUTZ has a 38 percent tax rebuke, and the required restore on the purpose is 13 percent. What is the NPV of the purpose?
4 page paper, 6 peer-reviewed references, APA format