[satmah]

No

[satmah]

Thanks for your comment. But i think if they used the word incremental, that would have changed the meaning to what you are saying. But the question made no mention of incremental. What they said in the question was that as a result of investing into the new machine, it would cause production units to increase by 9000 units every year. The question then went on to say to assume all units produced are sold.

What do you think?

[satmah]

Same thing i thought, but the question stated that the machine would cause sales units to increase by 9000 units every year. They had to state it in the question for a reason.

[satmah]

Did anyone take into consideration that the sales units would increase by 9000 units EVERY YEAR for the NPV calculation?

[satmah]

Hey guys what did you use for the sales units in the NPV calculation.
Remember they said that the sales would increase by 9000 units every year.

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