Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please post to where half the answer isnt cut off! thank you! Determine Cash Flows Marigold Inc. is planning to invest in new manufacturing equipment
Please post to where half the answer isnt cut off! thank you!
Determine Cash Flows Marigold Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The garden tool is expected to generate additional annual sales of 5,700 units at $52 each. The new manufacturing equipment will cost $123,500 and is expected to have a 10 year life and $9,500 residual value. Selling expenses related to the new product are expected to be 5% of sales revenue. The cost to manufacture the product includes the following on a per unit basis: Direct labor Direct materials 28.90 Fixed factory overhead-deprecation Variable factory overhead 4.50 Total $44.20 $8.50 2.00 Determine the net cash flows for the first year of the project, Years 2-4, and for the last year of the project. Use a mission to indicate cash outflows. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar. Marigold Inc. Net Cash Flows Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project. Use a minus sign to indicate cash outfitows. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar. Marigold Inc Net Cash Flows Years 2-9 Last Year Year 1 -123.500 Initial investment Operating cash flows Annual revenues Selling expenses Cost to manufacture 296400 296400 296.400 Net operating cash flows Total for Year! Total for Years 29 Residual value Od Total for last year Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started