You are valuing an investment that will pay you $12,000 the first year, $14,000 the second year, $17,000 the third year, $19,000
the fourth year, $23,000 the fifth year, and $29,000 the sixth year (all payments are at the end of each year). what is the value of the investment to you today if the appropriate annual discount rate is 11%?
1 answer:
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Answer:
Cost per unit of widget produced = $6.52
Explanation:
As for the provided information:
Total units produced = 4,600 units
Total cost of production = costs for Department 1 + Department 2 + Department 3
= $18,000 + $8,000 + $4,000 = $30,000
It does not matter how many units are sold as the cost of sales will include, selling and administrative cost also.
Therefore, all the cost will be considered.
Thus total cost of production = $30,000 for 4,600 units.
Cost per unit of widget =