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Powane Products Inc. is considering stroducing a new colliptical trainer, the NOVID-1 for home market. The CFO of Powinnas assembled the following financial information about

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Powane Products Inc. is considering stroducing a new colliptical trainer, the NOVID-1 for home market. The CFO of Powinnas assembled the following financial information about this new product - Last month, Powane Products hired a marketing company to conduct a survey of its currents to determine the potential market demand for a ww product. Powali received the marketing report last week along with a bill for $230,000 asking for payment in 10 days Powane Products will need to spend $15.900.000 today to build a new factory to manufacture and assemble the NOVID-19. This investment will be depreciated on a straight line basis to a $1,500,000 salvage value over 10 years. Powoline Products intends to sell the factory in 10 years for $1.500.000 - Production of the NOVID-19 will require an immediate increase in net working capital of $2.500.000. This investment will be fully recovered at the end of the life of the project Revenue from sales of the NOVID-19 are expected to be $11,000,000 per year for each of the next 10 years The NOVID-19 is expected to decrease sales of other Powaline Products elliptical trainers by $1,000,000 per year for each of the next 10 years Incremental direct costs to the entire company associated with producing and selling the NOVID-19 are estimated to be $7,500,000 per year for each of the next 10 years Powaline Products marginal tax rate is 35% Powaline Products weighted average cost of capital (WACC) is 12% Based on the information provided above, what is the non-operating terminal cashflow in your 10 for this project? Enter your answer as a dollar amount rounded, if necessary to decimal places. Do not include the dollar sign or any commes in your answer. For example, record $14,240,716.84 as 14240717 the final value is a net cash outflow, put a hyphen before your number with no space between the 1243200 to 15.000.000 de NOVIDTO. The to set the factory in 10 years 1.500.000 - Production of the NOVID-10 $2.500.000 This investment be Revenue brom sales of the NOVO od to be $11.000.000 year for the next 10 y - The NOVIO-1918 ted to decres of other Powo Producer ty 51.000.000 per year for each of the next 10 years Enorme direct costs to the entire comparty site with promo the NOVID-19 are stimated to be 57.500.000 per year for each other 10 years Powie Products marginal tax rates Powoline Products weighted wverage cost of capital (WACC) : 12% Based on the information provided above, what is the non-operating temtatea tow in your 10 for this project? Enter your answers adolar amount rounded, if necessary to decimal places. Do not include the dollar won or any commes in your answer. For example, record 514 240,716 84 14240717 the final value is a net cash outflow, put typhen before your number with no pace between the hyphen and the number. For example, enter a cash outflow of 51,243,200 1243200 Your Answer: Powuline Products, Inc. is considering introducing a new eliptical trainer, the NOVID-10, forse home market. The CFO of Powali sembled the following linancial information about this new product Last month, Powaline Products hired a marketing company to conduct a survey of its current users to determine the potential market demand for a new product. Powane received the marketing reportlast week along with a bill for $230,000 asking for payment in 10 days Powalne Products will need to spend $15.900,000 today to build a new factory to manufacture and assemble the NOVID-19. This investment will be depreciated on a straight-line basis to a $1,500,000 salvage value over 10 years. Powaline Products intends to sell the factory in 10 years for $1,500,000 - Production of the NOVID-19 will require an immediate increase in net working capital of $2,500,000. This investment will be fully recovered at the end of the life of the project. Revenue from sales of the NOVID-19 are expected to be $11,000,000 per year for each of the next 10 years The NOVID-19 is expected to decrease sales of other Powaline Products elliptical trainers by $1,000,000 per year for each of the next 10 years. Incremental direct costs to the entire company associated with producing and selling the NOVID-19 are estimated to be $7,500,000 per year for each of the next 10 years Powaline Products marginal tax rate is 35% Powaline Products weighted average cost of capital (WACC) is 12%. Based on the information provided above, what is the non-operating terminal cashflow In year 10 for this project? Enter your answer as a dollar amount rounded, if necessary, to decimal places. Do not include the dollar sign or any commas in your answer. For example, record 514,240,716.84 as 14240717.11 the final value is a net cash outflow, put a hyphen before your number with no space between the hyphen and the number. For example, enter a cash outflow of $1,243,200 as - 1243200

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