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Question: Fill in the blanks based on the following information The annual cash flow to use for revenue is _______ and for operating expenses is

Question: Fill in the blanks based on the following information

The annual cash flow to use for revenue is _______ and for operating expenses is _________

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. 1. Revenue & costs FFF conducted market research (costing $10,000) showing that annual sales are expected to be around 700 sofa beds per year for 5 years. Each sofa bed will be sold for $900. If the new Sofa bed is launched, FFF projects that net revenue from their existing SideTable line will increase by $5,000 per year. Variable costs of production are $150 per bed for the projected 700 beds sold per year. Fixed costs of production are $60,000 per year. Administrative costs will increase by $2,000 per year because of the new product line. If FFF launches the sofa bed, they will increase their box order with CustomBoxCo, reducing their per-unit box cost on other product lines. This is estimated to save $2,000 per year. The company will produce its product in its current workplace, which it rents for $6,000 per year. . 2. Capital Expenditures The new wood cutting machine will cost $420,000. ATO regulations require depreciation over 10 years to zero using the straight-line method. At the end of 5 years, the estimated value of the wood cutting machine is $50,000. The total cost of the required 3D printers is $750,000. ATO regulations require depreciation over 15 years to zero using the straight-line method. At the end of 5 years, the estimated value of the 3D printers is $300,000

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