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QUESTION 5 The ABC Company is considering an expansion of its production facilities which will permit the firm to build and sell a new line
QUESTION
The ABC Company is considering an expansion of its production facilities which will permit the firm to build and sell a new line of smart phones. The project requires a
$ capital investment think new machine and is expected to have a threeyear economic life. The asset will be depreciated to zero using straight line depreciation
method over the life of the project.
Other related information:
At the end of the project, the equipment can be sold for $
Incremental sales are projected to be $ per year
Annual costs excluding depreciation are estimated to be $$
The project requires a $ initial investment in net working capital.
The expected tax rate is
The project's CASH FLOW on date is $
Do NOT include the $ sign or any other text. Indicate negative value with a minus sign. Enter your answer rounded to nearest integer, eg
QUESTION
Using the data listed below, calculate the number of units that need to be produced in a year to attain Cash BreakEven.
If your answer is a fraction then round it up to the nearest higher integer.
Variable cost per unit is: $
Fixed Cost per year: $
Selling price per unit: $
Depreciation per year: $
Do not use any text or comma in your answer. Round your answer to decimal places.
QUESTION
sales of its printers by percent. If this change occurs then, ignoring effect of taxes, ABC company's Operating Cash Flow OCF will change by
Do NOT include the sign or any other text. Enter your answer as a percent and round your final answer to decimal places, eg
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