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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 5
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
$43473453 capital investment (think new machine) and is expected to have a three-year 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 $3642081.
Incremental sales are projected to be $33311177 per year
Annual costs (excluding depreciation) are estimated to be $$234785.
The project requires a $9602835 initial investment in net working capital.
The expected tax rate is 20%.
The project's CASH FLOW on date 3 is $
(Do NOT include the $ sign or any other text. Indicate negative value with a minus sign. Enter your answer rounded to nearest integer, e.g.10002)
QUESTION 6
Using the data listed below, calculate the number of units that need to be produced in a year to attain Cash Break-Even.
If your answer is a fraction then round it up to the nearest higher integer.
Variable cost per unit is: $7
Fixed Cost per year: $1907683
Selling price per unit: $28
Depreciation per year: $3003085
(Do not use any text or comma in your answer. Round your answer to 2 decimal places.)
QUESTION 7
sales of its printers by -5.70 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 2 decimal places, e.g.12.34)
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