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pls help with this!! will give thumbs up! EXS Inc. currently has two products, low-priced and hig-priced computers. EXS Inc. has decided to sell a

pls help with this!! will give thumbs up!
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EXS Inc. currently has two products, low-priced and hig-priced computers. EXS Inc. has decided to sell a new line of medium-priced computers. The plant and equipment required for producing the new line of computers costs $300 and will be depreciated down to zero over 20 years using straight-line depreciation. It is expected that the plant and equipment can be sold (market or scrap value) for $120 at the end of 10 years. The new computers will also require today an increase in net working capital of $50 that will be returned at the end of the project. Sales for the new line of computers are estimated at $400 a year. Variable costs are 70% of sales. The project is expected to last 10 years. In addition to the production variable costs, the fixed costs each year will be $60. The company has spent $6 in research and a marketing study that determined the company will lose $20 in sales a year of its existing low-priced computers (erosion of sales). The production variable cost of the existing low-priced computers is $16 a year. However, the study also determined that the company will gain $14 in sales a year of its existing high-priced computers (synergies); the production variable cost of the existing high-priced computers is $12 a year. The tax rate is 20 percent and the cost of capital is 10%. 1. What is the initial outlay (IO) for this project? r thisproject? A 2. What is the annual Earnings before Interests, Taxes, and Depreciation (EBIDTA) for this project? A/ 3. What is the net income for this project? A/ 4. What is the operating cash flow (OCF) for this project? A 5. What is the remaining book value for the plant at equipment at the end of the project? A 6. What is the tax effect from selling the plant and equipment at the end of the project? A/ 7. What is the termination value for this project? A/

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