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pls show steps, need help solving!! AAA Corp currently has one product, high-priced inwn mowers. AAA Corp has decided to sell a new line of

pls show steps, need help solving!!
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AAA Corp currently has one product, high-priced inwn mowers. AAA Corp has decided to sell a new line of medium-priced lawn mowers. The building and machinery for producing this new line is estimated to cost $11,000,000 and it will be depreciated down to zero over 30 years using straight-line depreciation. Also, an investment today on working capital in the amount of $2,000,000 is needed The working capital will be recovered at the end of the project Sales for the new line of lawn mowers are estimated at $16 million a year Annual variable costs are 60% of sales The project is expected to last 10 years. In addition to the production variable costs, the fixed costs each year will be $4,000,000 The company has spent $1,000,000 in a marketing study that determined the company will lose 911 million in sales a year of its existing high-priced lawn mowers. The production variable cost of these sales is $9 million a year. It is expected that at the end of the Plan project, the building and machinery can be sold for $8,000,000. The tax rate is 20 percent and the cost of capital is 6% a. What is the initial outlay (10) for this project? The Initial Outlay is $15,000,000 (Round your answer to the newest dollar - no decimals and commus are required to separate thousands and millions Use negative sign for negative cash flows do not use parenthesis) b. What is the operating cash flows (OCF) for each of the years for this project? Eerson Ed The OCF for each year of the project are $1,510,000 (Round your answer to the nearest doller - no decimals and commes are required to separate thousands . and mons c. What is the termination value (TV) cash flow (aka recovery cast or after-tax salvage value, or liquidation value of the assets) at the end of the project? The termination value at the end of the project is s Round your answer to two the nearest dollar - no decimals - and commas are required to separato thousands and miliona) d. What is the NPV of this project? The NPV of thin project is 5 (Round your answer to the nesrout dolor no decimals and comes are required to separate thousands and milions de negative sign for negative cash flow do not use parentes emester

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