An Example The Majestic Mulch and Compost Company MMCC

At this point, we want to go through a somewhat more involved capital budgeting analysis. Keep in mind as you read that the basic approach here is exactly the same as that in the shark attractant example used earlier. We have only added on some more real-world detail (and a lot more numbers).

MMCC is investigating the feasibility of a new line of power mulching tools aimed at the growing number of home composters. Based on exploratory conversations with buyers for large garden shops, MMCC projects unit sales as follows:

Year

Unit Sales

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