16,17,18

Cranberry Manufacturing Company is considering to purchase a new control device. The cost of the new device is $36.000, and the machine will be depreciated straight-line over a two-year period to zero salvage value. The firm's tax rate is 30%) At the outset of the project, Cranberry anticipates investing $2,500 in raw materials inventory. Management has decided to terminate the project in two years and sells the device at an anticipated used price of $6,500. Please use the following information for the next 3 questions Cranberry has forecast sales and costs over the two - year time horizon: 2. 1 Year 85,000 17,000 95,000 25,000 4,500 Sales Cost of Goods Other Costs o3 pnhablanc3,3000 orlbadua er rs nun vldedong Cranberry expects that it will have to add about $3,000 per year to its net n 1o working capital in year 1 (i.e., net working capital investment in year 1 isiene bunt 8w $3,000), and add nothing in year 2. bost hogenes bai bluorda 1 on dau 16. What is the initial investment, i.e., start-up cost (Co)?ens Tadbaue a. $36,000 b.$38,500 c. $33,500 Sped won jouni ers sslg o bluorta hocen d. $37,75022i,a Please Show Your Calculation Steps Below nsleviups rt 2 o leso fsunns e ner 1s apce won ertt to iow leunns nat s bla ar mot bej deeo leunne to rhow auns tos but 17. What is the net operating cash now at the end of year 1, 1.e. C a$48,2so b. s51.2so c $62,5o0 d. s67.900 Please Show Your Calculation Steps Below 18. What is the net operating cash flow at the end of year 2, 1.e. Car a. $62,690 b. $56,190 c. $60,740 d. $50,690 Please Show Your Calculation Steps Below