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Please assist with the last step in Part C. Thank you Toying With Nature wants to take advantage of children's fascination with dinosaurs by adding

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Please assist with the last step in Part C. Thank you

Toying With Nature wants to take advantage of children's fascination with dinosaurs by adding several scale-model dinosaurs to its existing product line. Annual sales of the dinosaurs are estimated at 80,000 units at a price of $6 per unit. Variable manufacturing costs are estimated at $2.50 per unit, incremental fixed manufacturing costs (excluding depreciation) at $49,000 annually, and dditional selling and general expenses related to the dinosaurs at $59,000 annually. To manufacture the dinosaurs, the company must invest $350,000 in design molds and special equipment. Since toy fads wane in popularity rather quickly, Toying With Nature anticipates the special equipment will have a three-year service life with only a $20,000 alvage value. Depreciation will be computed on a straight-line basis. All revenue and expenses other than depreciation will be eceived or paid in cash. The company's combined federal and state income tax rate is 40 percent. Required: . Prepare a schedule showing the estimated increase in annual net income from the planned manufacture and sale of dinosaur toys. . Compute the annual net cash flows expected from this project. Compute the following. Assume discounted at an annual rate of 15 percent. Use Exhibits 263 and 264 where necessary. \begin{tabular}{|l|l|r|l|} \hline & & & \\ \hline (1) & Payback period & 2.4 & years \\ \hline (2) & Return on average investment & 20.1 & % \\ \hline (3) & Net present value & & \\ \hline \end{tabular}

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