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TED-NO Corp. has decided to manufacture and sell a new line of low-priced cell phones. Annual sales for the new line of cell phones is estimated at $700,000 a year for each of the next 5 years. The variable costs are 80% of sales and fixed costs are $200,000 annually. A marketing study that cost $800,000 done six months ago revealed that introducing this new line of cells will result in additional sales of existing cell accessories products of $40,000 a year. The additional sales have a variable cost of $10,000 a year. The plant and equipment required for producing the new line of stoves costs $3,000,000 (today) and will be depreciated down to zero over 10 years using straight-line depreciation. The plant and equipment is sold for $900,000 at the end of 5 years. Net working capital increases by $400,000 at the beginning of the project (year 0 ) and it is reduced back to its original level in the final year. The tax rate is 20 percent and the discounting rate for the project is 11%. What is the annual Earnings Before Interests, Taxes, and Depreciation/Amortization (EBITDA)? For your answer, round to the nearest dollar, DO NOT use commas to separate thousands; do not use $ sign symbol, and if figure is negative then use the negative sign ( - ) before the first digit. For example, if your answer is $5,356,70 then enter 5357 ; if your answer is $1,000 then enter -1000 Your Answer: RET Inc. has decided to manufacture and sell a new line of high-priced commercial stoves. Projected sales for the new line of stoves in annual units for the next 10 years are 4,000 a year. The sales price is $500 per stove, the variable costs are $410 per stove, and fixed costs are $100,000 annually. The plant and equipment required for producing the new line of stoves costs $2,000,000 (today) and will be depreciated down to zero over 10 years sing straight-line depreciation. The plant and equipment is sold for $400,000 at the end of 10 years. Net working capital increases by $400,000 at the beginning of the project (year 0 ) and it is reduced back to its original level in the final year. The tax rate is 20 percent and the discounting rate for the project is 8%. What is the annual Earnings Before Interests, Taxes, and Depreciation/Amortization (EBITDA)? For your answer, round to the nearest dollar, DO NOT use commas to separate thousands; do not use $ sign symbol, and if figure is negative then use the negative sign ( - ) before the first digit. For example, if your answer is $5,356.70 then enter 5357 ; if your answer is $1,000 then enter -1000 Your