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Old Tom Morrison Golf Inc. is evaluating a new product high compression golf balls. The ball is tentatively called the Guttie. The production line for

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Old Tom Morrison Golf Inc. is evaluating a new product high compression golf balls. The ball is tentatively called the "Guttie." The production line for the Guttie would be set up in an unused section of Morrison's main plant. The machinery will cost $240,000. Morrison's inventories would have to be increased by $25,000 to handle the new line. The project is expected to last 2 years with estimated EBITDA of $180,000 in each year. The machinery has an expected salvage value of $25,000 at the end of two years Robertson's tax rate is 30% What are operating cash flows in the first year? (Assume that depreciation is not tax deductible.) Round your answer to the nearest doller $120000 Check Answer Old Tom Morrison Golf Inc. is evaluating a new product: huh compression golf balls. The ballis tentatively called the "Gutte.' The production line for the Guttle would be set up in an unused section of Morrison's main plant. The machinery will cost $240.000. Morrison's inventories would have to be increased by $25,000 to handle the new line. The project is expected to last 2 years with stimated EBITDA of $200,000 in each year. The machinery has an expected salvage value of $25,000 at the end of two years Robertson's tw rate is so, what are the terminal year cash How? (Assume that depreciation is not tax deductible ) Round your answer to the nearest dollar $ 176000 Tinney & Smyth Inc. is considering the purchase of a new batch polymer-bonding machine for producing Crazy Rubber, a children's toy The machine will increase EBITDA by 5215,000 per year for the next two years. The machine's purchase price is $260,000 and the salvage value at the end of two years is $46,800. To run the Crary Rubber production line the company will need to purchase an inventory of poldimethylsiloxane and boric acid for a total cost of $15.000. The tax rates 3 White the terminal year cash flows? (Assume that depreciation is not tax deductible) Round your answer to the nearest dollar $50000

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