Question 4.

Relevant Cash Flows [LO1] Winn bagel Corp. currently sells 30.000 motor homes per year at $73,000 each $120,000 each. The company wants to introduce a new portable camper to fill out its product line: it hopes $19,000 each. An independent consultant has determined that if Winn bagel introduces the new campers, it should by 2, 700 units per year and reduce the sales of its motor coaches by 1.300 units per year. What is the amount to u this project? Why? Calculating Projected Net Income [LO1] A proposed new investment has projected sales of $635,000. Variable are $193,000; depreciation is $54,000. Prepare a pro forma income statement assuming a tax rate of 35 percent. W Calculating OCF [LO1] Consider the following income statement; Fill in the missing numbers and then calculate the OCF. What is the depreciation tax shield? OCF from Several Approaches [LO1] A proposed new project has projected sales of $164,000. costs of $87,000. is 35 percent. Calculate operating cash flow using the four different approaches described in the chapter and verify Calculating Depreciation [LO1] A piece of newly purchased industrial equipment costs $1, 240,000 and is cl property under MACRS. Calculate the annual depreciation allowances and end-of-the-year book values for this Calculating Salvage Value [LO1] Consider an asset that costs $730,000 and is depreciated straight-line to zero over be used in a five-year project; at the end of the project, the asset can be sold for $192,000. If the relevant tax rate is -from the sale of this asset