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sales price. The new product will have an additional $495,000 of fixed costs each year, and the manufacturing equipment will have an initial cost of

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sales price. The new product will have an additional $495,000 of fixed costs each year, and the manufacturing equipment will have an initial cost of $2,430,000 and will be depreciated over elight years (stright line). The company tax rate is 40%. What is the acnual operating cash fow for the alarm systems if the projected sales and pisce per unt are constart over the next eight years? Should Huillman Systoms add the new home alarm system to its set of products? The manulacturng equipenent wall be soid of at the end of eight years for $210,000, and the cost of capial for this project is 13%. Whit is the annual operating cash flow of the new alarm systems? (Round to the nearest dollar) What is the alertax cash low of the fiarm sysiems at disposal? 9 (Round to the nearest dolac) What is the NPY of the newgalarm syatems? (Round to the nearest dollar.) Should Huttman systems add the new home alarm sysems to as sot of products? (5elect tee best response) A. No, becture the NDV is negative which meahs tho projocted arnual rate of return en tre peofect is less han the cost of capital. B. Yes, because the project will generate enough weath to give hrevtors an adequate yeid. NPV. Huflman Systems has forecasted sales for its new home niarm systems to be 63,000 units per year at $37.00 per unit. The cont to produce each unit is expecied to be abeut 41% of the sales price. The new product will have an addifional 5495,000 of fxed costs each year, and the manufacturing equipment will have an intial cost of $2,430,000 and will be deprocived over eight years (straight line). The company tax rate is 40%. What is the annual operaling cashi flow for the alarm systems if the projectod sales and price per unt ars constant over the next eight years? Should Hutiman Systems add the new home alarm system to its set of products? The manulacturing equipment will be sold of at he end of eight years for $2 ito.000, and the cost of copial for this project is 13%. What is the anrual operating cash flow of the new alarm systema? (Round to the nearest dellar) What is the after-exx cash fow of the alarm syutems at disposal? 1 (Round to the nearest dellar.) What is the NPV of the newhalarm syatema? (Round to the necest dollar) Should Huitman Systens add the new home wam sytems to hs set of producto? (Select the best responte) B. Yes, becase the propect will gererale enough weath to give nvestons an adequate yeld. sales price. The new product will have an additional $495,000 of fixed costs each year, and the manufacturing equipment will have an initial cost of $2,430,000 and will be depreciated over elight years (stright line). The company tax rate is 40%. What is the acnual operating cash fow for the alarm systems if the projected sales and pisce per unt are constart over the next eight years? Should Huillman Systoms add the new home alarm system to its set of products? The manulacturng equipenent wall be soid of at the end of eight years for $210,000, and the cost of capial for this project is 13%. Whit is the annual operating cash flow of the new alarm systems? (Round to the nearest dollar) What is the alertax cash low of the fiarm sysiems at disposal? 9 (Round to the nearest dolac) What is the NPY of the newgalarm syatems? (Round to the nearest dollar.) Should Huttman systems add the new home alarm sysems to as sot of products? (5elect tee best response) A. No, becture the NDV is negative which meahs tho projocted arnual rate of return en tre peofect is less han the cost of capital. B. Yes, because the project will generate enough weath to give hrevtors an adequate yeid. NPV. Huflman Systems has forecasted sales for its new home niarm systems to be 63,000 units per year at $37.00 per unit. The cont to produce each unit is expecied to be abeut 41% of the sales price. The new product will have an addifional 5495,000 of fxed costs each year, and the manufacturing equipment will have an intial cost of $2,430,000 and will be deprocived over eight years (straight line). The company tax rate is 40%. What is the annual operaling cashi flow for the alarm systems if the projectod sales and price per unt ars constant over the next eight years? Should Hutiman Systems add the new home alarm system to its set of products? The manulacturing equipment will be sold of at he end of eight years for $2 ito.000, and the cost of copial for this project is 13%. What is the anrual operating cash flow of the new alarm systema? (Round to the nearest dellar) What is the after-exx cash fow of the alarm syutems at disposal? 1 (Round to the nearest dellar.) What is the NPV of the newhalarm syatema? (Round to the necest dollar) Should Huitman Systens add the new home wam sytems to hs set of producto? (Select the best responte) B. Yes, becase the propect will gererale enough weath to give nvestons an adequate yeld

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