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Snappy Yard has developed a new product, the Automatic Lawnmower. Snappy s paid $ 1 2 0 , 0 0 0 for a marketing survey
Snappy Yard has developed a new product, the Automatic Lawnmower. Snappys paid $ for a marketing survey to determine the products viability. It is felt that Automatic Lawnmower will generate sales of $ per year. The fixed costs will be $ annually, and variable costs will amount to of sales. The equipment necessary for the production of the Automatic Lawnmower will cost $ It will be depreciated in a straightline manner for the four years of the product life as with all fads, it is felt the sales will end quickly This is the only initial cost for the production. Snappys has a tax rate of and a required return of Calculate the OCF, payback period, NPV and IRR.
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