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Homework: Problem Set 5 Save 13 of 14 (13 complete) HW Score: 48.22%, 6.75 of 14 pts Score: 0.25 of 1 pt & P10-14 (similar
Homework: Problem Set 5 Save 13 of 14 (13 complete) HW Score: 48.22%, 6.75 of 14 pts Score: 0.25 of 1 pt & P10-14 (similar to) Question Help O NPV. Huffman Systems has forecasted sales for its new home alarm systems to be 60,000 units per year at $37,00 per unit. The post to produce each unit is expected to be about 42% of the sales price. The new product will have an additional $490,000 of fixed costs each year, and the manufacturing equipment will have an initial cost of $2,300,000 and will be depreciated over eight years (straight line). The company tax rate is 40%. What is the annual operating cash flow for the alarm systems if the projected sales and price per unit are constant over the next eight years? Should Huffran Systems add the new home alarm system to its set of products? The manufacturing equipment will be sold off at the end of eight years for $210,000, and the cost of capital for this project is 13%. What is the annual operating cash flow of the new alarm systems? S 593,560 (Round to the nearest dollar.) What is the after-tax cash flow of the alarm systems at disposal? $ (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. parts 2 remaining Clear All Check
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