course hero 8 - variables given here when it performs its...

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Stock Valuation , Capital Budgeting, Project Analysis and Evaluation Scenario Analysis: Rollo Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,600 per unit; variable costs = $180 per unit; fixed costs = $5.5 million; quantity = 110,000 units. Suppose the company believes all of its estimates are accurate only to within plus or minus 15 percent. What values should the company use for the four
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Unformatted text preview: variables given here when it performs its best case scenario analysis? What about the worst case scenario? Scenario Analysis Best Case +/- 15 % Worst Case +/- 15 % Price (+ best and - worst) $1840 $1360 Variable Cost (- best and + worst) $153 $207 Fixed Cost (- best and + worst) $4.675 millions $6.325 millions Qty (+ best and - worst) 126500 units 93500 units...
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This note was uploaded on 04/23/2010 for the course BUS Business 1 taught by Professor B.mishra during the Spring '10 term at UC Riverside.

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