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1) Lisowski Laptops is investigating the opportunity of developing and selling the notebook computer which is compatible with both Pc’s and Macintosh systems and which can get television signals. Its approximate selling price is= $2500. Variable costs (supplies and labor) will= $1500 per unit, and fixed cost per year would estimated $200,000. Up-front investments in plant and equipment will total= $270,000, which will be straight-line reduced over three years. Initial working capital investment will be= $100,000 and will rise proportionately with sales. Bill, CEO forecast sales of laptop will be= 50,000 units the first year, 60,000 second year and 45,000 the third year, at which time product life cycles would need closing down production of model. At that time, market value of project’s assets will be about= $70,000. LL’s tax rate is 40% and its needed return on projects like this one is 17%. Must Lisowski Laptops offer new computer?

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