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Floyd Inc. has decided to manufacture and sell a new line of high - priced commercial mowers. Annual sales for the new line of mowers
Floyd Inc. has decided to manufacture and sell a new line of highpriced commercial mowers. Annual sales for the new line of mowers is estimated at $ a year for each of the next years. The variable costs are of sales and fixed costs are $ annually. A marketing study that cost $ done six months ago revealed that introducing this new line of mowers will result in lost sales of existing products of $ a year. The lost sales have a variable cost of $ a year.
The plant and equipment required for producing the new line of mowers costs $today and will be depreciated down to zero over years using straightline depreciation. The plant and equipment is sold for $ at the end of years. Net working capital increases by $ at the beginning of the project year and it is reduced back to its original level in the final year. The tax rate is percent and the discounting rate for the project is
What is the annual Operating Cash FLow OCF for the new project new line of highpriced commercial mowers
For your answer, DO NOT USE commas to separate thousands and round to the nearest dollar. DO NOT use the $ symbol. If the number is negative, then enter the minus symbol in front of the first digit. for example if the result is then enter
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