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Please solve A ! When Anthony first pitched a new product idea to his manager, it was very well received because he did such a
Please solve A
When Anthony first pitched a new product idea to his manager, it was very well received because he did such a thorough job of When Anthony first pitched a new product idea to his manager, it was very well received because he did such a thorough job of
researching and analyzing it He presented a comprehensive forecast that included both possible and probable levels of returns to be
earned from this investment. As a result, the company handed over the money and put Anthony in charge of the project. The company
olanned to evaluate the investment based on his "probable" forecast.
One year into the project, money started getting tight in other divisions of the company. Pressure was on for Anthony to provide some
oroof that this year investment was starting to work. As of the end of that first year, $ in operating costs and $ in new
operating cash inflows both reflect aftertax amounts had been realized.
Anthony had collected the following information but clearly still only had projections for the remaining years of this project.
Estimated operating cash inflows aftertax: What was Anthony's initial projection for the NPV of the cash flows at this probable level of activity, assuming an discount
rate? Tax effects, including any depreciation tax shield, have already been accounted for in the above amounts. Round present
value factor calculations to decimal places, eg and final answer to decimal places eg Enter negative amounts
using either a negative sign preceding the number eg or parentheses eg
NPV $
researching and analyzing it He presented a comprehensive forecast that included both possible and probable levels of returns to be
earned from this investment. As a result, the company handed over the money and put Anthony in charge of the project. The company
olanned to evaluate the investment based on his "probable" forecast.
One year into the project, money started getting tight in other divisions of the company. Pressure was on for Anthony to provide some
oroof that this year investment was starting to work. As of the end of that first year, $ in operating costs and $ in new
operating cash inflows both reflect aftertax amounts had been realized.
Anthony had collected the following information but clearly still only had projections for the remaining years of this project.
Estimated operating cash inflows aftertax:
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