Pisa Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza that will be low in cholesterol and contain no trans fats. The firm expects that sales of the new pizza will be $18 million per year. While many of these sales will be to new customers, Pisa Pizza estimates that 42% will come from customers who switch to the new, healthier pizza instead of buying the original version. a. Assume customers will spend the same amount on either version. What level of incremental sales is associated with introducing the new pizza? b. Suppose that 59% of the customers who will switch from Pisa Pizza's original pizza to its healthier pizza will switch to another brand if Pisa Pizza does not introduce a healthier pizza. What level of incremental sales is associated with introducing the new pizza in this case? a. Assume customers will spend the same amount on either version. What level of incremental sales is associated with introducing the new pizza? The incremental sales associated with introducing the new pizza will be $ million. (Round to two decimal places.) Daily Enterprises is purchasing a $10.3 million machine. It will cost$47,000 to transport and install the machine. The machine has a depreciable life of five years using straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $4.1 million per year along with incremental costs of $1.3 million per year. Daily's marginal tax rate is 21% You are forecasting incremental free cash flows for Daily Enterprises. What are the incremental free cash flows associated with the new machine? The free cash flow for year 0 will be $ (Round to the nearest dollar.) Cellular Access, Inc., a cellular telephone service provider, reported net income of $250.6 million for the most recent fiscal year. The firm had depreciation expenses of $91.8 million, capital expenditures of $191.5 million, and no interest expenses. Net working capital increased by $10.9 million. Calculate the free cash flow for Cellular Access for the most recent fiscal year. The free cash flow is $ million. (Round to one decimal place.) You purchased a machine for $1.08 million three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 25%. If you sell the machine today (after three years of depreciation) for $756,000, what is your incremental cash flow from selling the machine? Your total incremental cash flow will be \$ (Round to the nearest cent.)
