1. Apples (AAPL) iPad jump started the touchscreen computer market to levels few analysts had ever dreamed possible. Moreover, the popularity of the iPad pushed Apples competitors to offer similar touchscreen computers. Hewlett Packard offered its Slate product and others soon followed suit. One such manufacturer was Soko Industries. The Soko product, the sPad, had a number of appealing features but the relative obscurity of the company did not help product sales. In fact, the sPad was initially sold for $600, and disappointing sales led Soko Industries management to consider taking a 25 percent price break on its sPad, which costs $400 to manufacture and sell.

2. In 2010 the Cameron Manufacturing Company began working on a new version of its tried-and-true wind-powered water pump. For 15 years the firm had manufactured replacement parts fir older-style windmills used on farms and ranches throughout the U.S. Southwest. However, the old-style pumps required the use of rods and leather seals that would wear out over time and require servicing. When Camerons owners initiated the design of a new pumping process in 2013, they explored a number of possible designs and spent over $150,000 in fabrication and testing the new design before perfecting the system that they are now ready to place into production and begin marketing. To manufacture the new pumps Cameron will have to spend $750,000 on new equipment plus $300,000 in advertising and promotion for the launch of the new product. These expenditures will take place during 2013.

3. Captains Cereal is considering introducing a variation of its current breakfast cereal, Crunch Stuff. This new cereal will be similar to the old, with the exception that it will contain sugar-coated marshmallows shaped in the form of stars. The new cereal will be called Crunch Stuff n Stars. It is estimated that the sales for the new cereal will be $25 million; however, 20 percent of those sales will draw from former Crunch Stuff customers who switched to Crunch Stuff n Stars and who would not have switched if the new product had not been introduced.

REQUIREMENT: Compute for the projected operating cash flows (see the sample format below).

0 1 2 3 4 5 Purchase -200,000.00 360,000.00 360,000.00 360,000.00 360,000.00 Sales Increase in AR Increase in INV Increase in AP COGS Cash OPEX EBITDA -60,000.00 -36,000.00 18,000.00 360,000.00 60,000.00 36,000.00 -18,000.00 -216,000.00 5,000.00 139,000.00 -41,700.00 -216,000.00 5,000.00 139,000.00 -41,700.00 -216,000.00 5,000.00 139,000.00 -41,700.00 -216,000.00 5,000.00 139,000.00 -41,700.00 -216,000.00 -5,000.00 139,000.00 -41,700.00 Taxes Tax Shield from DA OCF 12,000.00 109,300.00 12,000.00 109,300.00 12,000.00 109,300.00 12,000.00 109,300.00 12,000.00 187,300.00 -278,000.00