Kellogg Company is considering launching a new flavour of its Eggo frozen waffle called the Eggo it in order to mane ire some of the free publicity around their product from the first seasons of the Stranger Things show on Netflix Although over five years has now passed since the TV show was released. Kellogg Company forecasts that they would still be able to generate sales of the Eggo 77 of $862,500 $650,000 and $500,000 for the next three years, respectively, they decide to proceed with the new flavour. You estimate that 40.0% of these sales figures would come from customers who would swap to the new Eggo 17 from one of the firm's other existing four c Eggo frozen watfic. You forecast that the new Eggo 17 will have the same 88.0% gross proft margin as all other existing flavours of the Eggo product that the firm sels. To handle the forecast temand for the Foyn 11, starting the project would require an initial up-front investment in waffle inventory of 875,000. This would be followed by further errusl increases in the inertiary wel of $48,000 in each of the three years of the project. You estimate that all of this intory will be fully recoverables cust) by Ken Corporation at the end of the projet lie, att-3). The Eggo 71 project would make use of the spare capacity within an existing wattic factory that was built by the company 7 years ago at a cost of $6,000,000. Kollogg's can find no alternate use for the factory's spare capacity other than this now wattic project although the rest of the factory will continue to be used by Kalog Company's other wattie projects in crder to produce the 1900's themed womics and packaging for this new ggc it product the company will need to invest in additional machinery and tooling at an up front cost or SSSS, 000 Alle le le proces by womenting to the right-line med Tholai keyin ter plek in eniginella - 17 years, we may art It will be millora ciginal lee lys You predict that three years-rom now the echth and final sezon of Stronger lungs will be so bad that it leaves the sucience angry such that demand for your 1990 11 watties will disappear entry into your project would terminate at the end of the third year due to lack of demand. You estimate the machinery and tooing can savogod(.e. sold at the end of the project for a market price of $192,850 You cast that the firm would say IRC ata marginal leaf 27.5% on all pants related to the Fogo 17 project and the appropriate cost of capital for Kellogg Company's we division is 13.5% annum. A) What would be the incremental depreciation expense in Year 1 of the project it Kellogg Company decides to lounch this ren Eggo 17 flavour? The incremental deprecation expense would be in Year 1 of the firm sccepts the project [Round your answer to me nearest dollar [Use the unrounded number in any future question parts that require it) B, , B) What would be the incremental NOPAT fie net operating profit after tau) for the Eppo 11 project in Year 1 Year 2 and Year 3? Round your way to the nearest dallari Use the unrounded number in any we gestion ports that require it) The incremental NOPAT would be in Year 1 if the firm repts the project The Incremental NOPAT would tas in Year 2 if the form accepts the project The incremental NOPAT WE : in Year 3 hwpih prejel If the firmes projetadley, let the resulting incremental after-tax cash flow from the sale of long-term metal had af the project at the end of Year?? If the firm Empts the projet dit would receive an incremental after-tax cash flow of S from selling some of its plent, property, and/or equipment..some of its long-term assets At the end of war 3. Ifound your answer to the nearest dollar (Use the unrounded number in any future question ports that require it) D) What would be the incremental FCF fim. free cash flow for the Eggo 71 project in Year O. Year 1 Year 2 nd Year 37 (Round your answers to the nearest dollar) Include the minus sign for a cash out) Use me urrounded number in any future question parts mat require in The firm would experience an immediate incremental FCF of at Year Oif it accepts the project [Nore the input above waves the up-tot-cushow and not the telcoshow] The incremental FCF would be in Year 1 if the firm ccept the project Note the above thout want the t-7 cash flow at the end of the first whole year The Incremental FCF would be n Year 2 if the torm Boots the project The incremental FCF w $ E) What is the NPV A-01 af plant for Kellogg Company? You estimate that the the represent salap of the Eggo 11 project is Round your answer to the nearest dallari | Check | Kellogg Company is considering launching a new flavour of its Eggo frozen waffle called the Eggo it in order to mane ire some of the free publicity around their product from the first seasons of the Stranger Things show on Netflix Although over five years has now passed since the TV show was released. Kellogg Company forecasts that they would still be able to generate sales of the Eggo 77 of $862,500 $650,000 and $500,000 for the next three years, respectively, they decide to proceed with the new flavour. You estimate that 40.0% of these sales figures would come from customers who would swap to the new Eggo 17 from one of the firm's other existing four c Eggo frozen watfic. You forecast that the new Eggo 17 will have the same 88.0% gross proft margin as all other existing flavours of the Eggo product that the firm sels. To handle the forecast temand for the Foyn 11, starting the project would require an initial up-front investment in waffle inventory of 875,000. This would be followed by further errusl increases in the inertiary wel of $48,000 in each of the three years of the project. You estimate that all of this intory will be fully recoverables cust) by Ken Corporation at the end of the projet lie, att-3). The Eggo 71 project would make use of the spare capacity within an existing wattic factory that was built by the company 7 years ago at a cost of $6,000,000. Kollogg's can find no alternate use for the factory's spare capacity other than this now wattic project although the rest of the factory will continue to be used by Kalog Company's other wattie projects in crder to produce the 1900's themed womics and packaging for this new ggc it product the company will need to invest in additional machinery and tooling at an up front cost or SSSS, 000 Alle le le proces by womenting to the right-line med Tholai keyin ter plek in eniginella - 17 years, we may art It will be millora ciginal lee lys You predict that three years-rom now the echth and final sezon of Stronger lungs will be so bad that it leaves the sucience angry such that demand for your 1990 11 watties will disappear entry into your project would terminate at the end of the third year due to lack of demand. You estimate the machinery and tooing can savogod(.e. sold at the end of the project for a market price of $192,850 You cast that the firm would say IRC ata marginal leaf 27.5% on all pants related to the Fogo 17 project and the appropriate cost of capital for Kellogg Company's we division is 13.5% annum. A) What would be the incremental depreciation expense in Year 1 of the project it Kellogg Company decides to lounch this ren Eggo 17 flavour? The incremental deprecation expense would be in Year 1 of the firm sccepts the project [Round your answer to me nearest dollar [Use the unrounded number in any future question parts that require it) B, , B) What would be the incremental NOPAT fie net operating profit after tau) for the Eppo 11 project in Year 1 Year 2 and Year 3? Round your way to the nearest dallari Use the unrounded number in any we gestion ports that require it) The incremental NOPAT would be in Year 1 if the firm repts the project The Incremental NOPAT would tas in Year 2 if the form accepts the project The incremental NOPAT WE : in Year 3 hwpih prejel If the firmes projetadley, let the resulting incremental after-tax cash flow from the sale of long-term metal had af the project at the end of Year?? If the firm Empts the projet dit would receive an incremental after-tax cash flow of S from selling some of its plent, property, and/or equipment..some of its long-term assets At the end of war 3. Ifound your answer to the nearest dollar (Use the unrounded number in any future question ports that require it) D) What would be the incremental FCF fim. free cash flow for the Eggo 71 project in Year O. Year 1 Year 2 nd Year 37 (Round your answers to the nearest dollar) Include the minus sign for a cash out) Use me urrounded number in any future question parts mat require in The firm would experience an immediate incremental FCF of at Year Oif it accepts the project [Nore the input above waves the up-tot-cushow and not the telcoshow] The incremental FCF would be in Year 1 if the firm ccept the project Note the above thout want the t-7 cash flow at the end of the first whole year The Incremental FCF would be n Year 2 if the torm Boots the project The incremental FCF w $ E) What is the NPV A-01 af plant for Kellogg Company? You estimate that the the represent salap of the Eggo 11 project is Round your answer to the nearest dallari | Check |