{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Lockheed Martin Example 4 (Breakeven Analysis) (1)

Lockheed Martin Example 4 (Breakeven Analysis) (1) - are...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Lockheed Martin Example 4 (Breakeven Analysis) Lockheed Martin has secured a satellite launch contract from a European communications company for the next 8 years. To land that contract, they invested $13M in a satellite tracking system. Of that amount, $8M was paid up front and the remaining $5M was paid during the first year of operation. The annual operating costs for the satellite tracking system
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: are estimated at $0.9M per year (which includes the cost of personnel, electricity, maintenance, etc.). At the end of the contract, it is estimated that the equipment will have a salvage value of $0.5M. How much must they charge the communications company each year to break even in Year 3 if their MARR is 15% per year?...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online