A Consumer Product Company Is Considering Introducing a New Shaving

question 3

Essay

A consumer product company is considering introducing a new shaving system called DELTA-4 in the market.
The company plans to manufacture 75 million units of DELTA-4 a year. The investment required at time 0 for
building the manufacturing plant is estimated to be $500 million, and the economic life of the project is assumed
to be 10 years with a salvage value of $120 million. The annual total operating expenses, including
manufacturing costs and overheads, are estimated to be $175 million. If the company's MARR is 25%, determine
the minimum price that the company should charge for a DELTA-4 shaving system (without considering any
tax effects).

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Definitions:

Personal Values

The principles and beliefs that an individual holds as important and guiding their behavior.

Ethical Problem

A situation or issue that requires an individual or organization to choose between alternatives that must be evaluated as right or wrong.

Public Policy

Principles and guidelines that governments follow in their management and administration of public affairs.

Normative Ethics

The study of ethical action and the determination of what is morally right and wrong, obligatory, permissible, or desirable.