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Orange Monster Drink is considering the purchase of a plum jucer (the Moment Muid). The company has assembled the following financial information about the proposed

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Orange Monster Drink is considering the purchase of a plum jucer (the Moment Muid). The company has assembled the following financial information about the proposed new product The juicer will cost $2,300,000 fully installed and has a 15-year life. I will be depreciated to a book value of $360,000 and sold for that amount in year 16. - The sale of now juice will generate $895,000 in incremental sales each year for the next 15 years - Because of the expansion, incremental operating costs will increase by $275,000 per year - The company will increase not working capital by $260,000 at the beginning of the project, the net working capital will be liquidated at the end of the project - Last year, the Engineering Department spent $25,000 researching the various juicers. - Portions of the plant floor have been redesigned to accommodate the juicer. The Incremental cost of this redesign is estimated to be $36.000 - Orange Monster Drinks' marginal tax rate is 30% - Orange Monster Drinks will finance all Year O costs with 55% equity and 45% debt. . Currently Orange Monster Drinks' 16-year, 6% coupon bond (semi-annual payments) sells for $1,030.00 - Orange Monster Drinks' stock currently has a market value of $20 and the company believes the market estimates that dividends will grow at 25% forever. Next year's dividend is projected to be $1.50. Based on the information provided above, what is the annual operating net cash flow for year 5 (Le CF5) for this project? Enter your answer as a dollar amount rounded, if necessary, to decimal places. Do not include the dollar sign or any commas in your answer. For example, record $14,240,716.84 as 14240717 the final value is a net cash outflow, put a hyphen before your number with no space between the hyphen and the number. For example, enter a cash outflow of $1,243,200 10 as-1243200 Your Answer: : Orange Monster Drink is considering the purchase of plum juice (the Moment Maid). The company has assembled the following financial informition about the proposed new product The juicer will cost $2,300,000 fully installed and has a 15-year life. It will be deprecated to book value of $350,000 and sold for that amount in year 15. The sale of new juice will generate $395,000 in incremental sales each year for the text 15 yours . Because of the expansion, incremental operating costs will increase by $275,000 per year The company will increase not working capital by 3260,000 at the beginning of the project, the networking capital will be liquidated at the end of the project . Last year, the Engineering Department spent $25,000 researching the various juicers. Portions of the plant or have been redesigned to accommodate the juicer. The incremental cost of this redesign is estimated to be $30,000 - Orange Monster Drinks' marginal tastrate is 30% - Orange Monster Drinks will finance all Year O costs with 55% equity and 45% debt. . Currently, Orange Monister Drinks 16-year, 6% coupon bond (semi-annuin payments) wells Orange Monster Drinks' stock currently has a market value of $20 and the company believes the market estimates that dividends will grow at 2.6% forever. Next year's dividend is projected to be $1.50. Based on the information provided above, what is the annual operating net cash flow for year 8 llo, CF5) for this project? Enter your answer as a dollar amount rounded, if necessary, to decimal places. Do not include the dollar sign or any commas in your answer. For example, record $14,240,716.84 s 14240717.11 the final value is a net cash outflow, put a hyphen before your number with no space between the hyphen and the number. For example, enter a cash outflow of $1,243,200 as-1243200. Orange Monster Drink is considering the purchase of a plum jucer (the Moment Muid). The company has assembled the following financial information about the proposed new product The juicer will cost $2,300,000 fully installed and has a 15-year life. I will be depreciated to a book value of $360,000 and sold for that amount in year 16. - The sale of now juice will generate $895,000 in incremental sales each year for the next 15 years - Because of the expansion, incremental operating costs will increase by $275,000 per year - The company will increase not working capital by $260,000 at the beginning of the project, the net working capital will be liquidated at the end of the project - Last year, the Engineering Department spent $25,000 researching the various juicers. - Portions of the plant floor have been redesigned to accommodate the juicer. The Incremental cost of this redesign is estimated to be $36.000 - Orange Monster Drinks' marginal tax rate is 30% - Orange Monster Drinks will finance all Year O costs with 55% equity and 45% debt. . Currently Orange Monster Drinks' 16-year, 6% coupon bond (semi-annual payments) sells for $1,030.00 - Orange Monster Drinks' stock currently has a market value of $20 and the company believes the market estimates that dividends will grow at 25% forever. Next year's dividend is projected to be $1.50. Based on the information provided above, what is the annual operating net cash flow for year 5 (Le CF5) for this project? Enter your answer as a dollar amount rounded, if necessary, to decimal places. Do not include the dollar sign or any commas in your answer. For example, record $14,240,716.84 as 14240717 the final value is a net cash outflow, put a hyphen before your number with no space between the hyphen and the number. For example, enter a cash outflow of $1,243,200 10 as-1243200 Your Answer: : Orange Monster Drink is considering the purchase of plum juice (the Moment Maid). The company has assembled the following financial informition about the proposed new product The juicer will cost $2,300,000 fully installed and has a 15-year life. It will be deprecated to book value of $350,000 and sold for that amount in year 15. The sale of new juice will generate $395,000 in incremental sales each year for the text 15 yours . Because of the expansion, incremental operating costs will increase by $275,000 per year The company will increase not working capital by 3260,000 at the beginning of the project, the networking capital will be liquidated at the end of the project . Last year, the Engineering Department spent $25,000 researching the various juicers. Portions of the plant or have been redesigned to accommodate the juicer. The incremental cost of this redesign is estimated to be $30,000 - Orange Monster Drinks' marginal tastrate is 30% - Orange Monster Drinks will finance all Year O costs with 55% equity and 45% debt. . Currently, Orange Monister Drinks 16-year, 6% coupon bond (semi-annuin payments) wells Orange Monster Drinks' stock currently has a market value of $20 and the company believes the market estimates that dividends will grow at 2.6% forever. Next year's dividend is projected to be $1.50. Based on the information provided above, what is the annual operating net cash flow for year 8 llo, CF5) for this project? Enter your answer as a dollar amount rounded, if necessary, to decimal places. Do not include the dollar sign or any commas in your answer. For example, record $14,240,716.84 s 14240717.11 the final value is a net cash outflow, put a hyphen before your number with no space between the hyphen and the number. For example, enter a cash outflow of $1,243,200 as-1243200

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