Class work

price
demand
unit cost
fixed cost
revenue
veriable cost
profit

4
29000
0.45
45000
116000
13050
57950
profit

price

revenue
57950

1
1.25
1.5
1.75
2
2.25
2.5
2.75
3
3.25
3.5
3.75
4

116000

variable cost
13050
25200
24187.5
23175
22162.5
21150
20137.5
19125
18112.5
17100
16087.5
15075
14062.5
13050

Problem 1

project 1 cf

0
-400000000

1
2
3
400000000 -400000000 400000000

project 2 cf

-400000000

-400000000 -400000000 400000000

NPV 1

($91,253,081.32)

npv 2

($272,115,044.30)

r
4
5
-400000000 400000000
400000000 400000000

0.1

Problem 2
proje 1 CF

1
-42

2
120

3
20

4
26

project 2 cf

-80

36

36

36

irr 1
irr2

208%
17%

r
npv 1
npv 2

0.18
$89.88
($1.73)