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Question 4 options: Use the following information to answer the 8 questions ( filling in the blanks ) that follow it . When answering the
Question options: Use the following information to answer the questions filling in the blanks that follow it When answering the questions, DO NOT use dollar signs, DO NOT use parenthesis to denote negative numbers, USE the negative sign and place it in front of first digit of your answer when your answer is a negative number. Enter answer en millions rounding to decimals. For example, if your answer is $ then enter ; if your answer is $ then enter ; if your answer is $ then enter ; RET Inc. currently has one product, lowpriced stoves. RET Inc. has decided to sell a new line of mediumpriced stoves. Sales revenues for the new line of stoves are estimated at $ million a year. Variable costs are of sales. The project is expected to last years. Also, nonvariable costs are $ million per year. The company has spent $ million in research and a marketing study that determined the company will lose cannibalization $ million in sales a year of its existing lowpriced stoves. The production variable cost of the existing lowpriced stoves is $ million a year. The plant and equipment required for producing the new line of stoves costs $ million and will be depreciated down to zero over years using straightline depreciation. It is expected that the plant and equipment can be sold salvage value for $ million at the end of years. The new stoves will also require today an increase in net working capital of $ million that will be returned at the end of the project. The tax rate is percent and the cost of capital is What is the initial outlay IO for this project? What is the annual Earnings before Interests, and Taxes EBIT for this project? What is the annual net operating profits after taxes NOPAT for this project? What is the annual incremental net cash flow operating cash flow: OCF for this project? What is the remaining book value for the plant at equipment at the end of the project? What is the cash flow due to tax on salvage value for this project? Enter a negative # if it is a tax gain remember in millions and decimals For example, if your answer is a tax on capital gains of $ then enter ; if your answer is a tax shelter from a capital loss of $ then enter What is the project's cash flow for year for this project? What is the Net Present Value NPV for this project?
Question options:
Use the following information to answer the questions filling in the blanks that follow it When answering the questions, DO NOT use dollar signs, DO NOT use parenthesis to denote negative numbers, USE the negative sign and place it in front of first digit of your answer when your answer is a negative number. Enter answer en millions rounding to decimals. For example,
if your answer is $ then enter ;
if your answer is $ then enter ;
if your answer is $ then enter ;
RET Inc. currently has one product, lowpriced stoves. RET Inc. has decided to sell a new line of mediumpriced stoves. Sales revenues for the new line of stoves are estimated at $ million a year. Variable costs are of sales. The project is expected to last years. Also, nonvariable costs are $ million per year. The company has spent $ million in research and a marketing study that determined the company will lose cannibalization $ million in sales a year of its existing lowpriced stoves. The production variable cost of the existing lowpriced stoves is $ million a year.
The plant and equipment required for producing the new line of stoves costs $ million and will be depreciated down to zero over years using straightline depreciation. It is expected that the plant and equipment can be sold salvage value for $ million at the end of years. The new stoves will also require today an increase in net working capital of $ million that will be returned at the end of the project.
The tax rate is percent and the cost of capital is
What is the initial outlay IO for this project?
What is the annual Earnings before Interests, and Taxes EBIT for this project?
What is the annual net operating profits after taxes NOPAT for this project?
What is the annual incremental net cash flow operating cash flow: OCF for this project?
What is the remaining book value for the plant at equipment at the end of the project?
What is the cash flow due to tax on salvage value for this project? Enter a negative # if it is a tax gain remember in millions and decimals For example, if your answer is a tax on capital gains of $ then enter ; if your answer is a tax shelter from a capital loss of $ then enter
What is the project's cash flow for year for this project? What is the Net Present Value NPV for this project?
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