The following product line information is for the Swiss Watch Company. The company is considering dropping its Cidren's product line due to poor operating income performance allocated to each product line based on sales revenue ed expenses are 8 Sales Variable expenses Fixed expenses Operating income Watch Products Hen's Women's Children's $30,000 $50,000 $40,000 10,000 15,000 25,000 15,000 25,000 20,000 $5,000 $10,000 $(5,600) (a) Calculate the effect on the Swiss Company's operating income the Children's watch product line is discontinued Comment on your analysis (D) Assume that Swiss Company discontinues its Children's product line. Calculate the total operating income for the Swiss Company Essay Too badan B I VS E3: 15 The following data have been collected by capital budgeting analysts Condel Brothers Ol Co. concering the drilling and production of known reserves an offshore location $5,300,000 2245 1,200,000 Investment in ricing equipment and related personnel costs required to pump the oli Net increase in inventory and receivables associated with the drilling and production of the reserves. Assume this investment will be recovered at the end of the project Net cash inflow fron operations for the expected life of the reserves for years: Year Year 2 Year 3 Salvage value of machinery and equipment at the productive life Cost of capital 2,000,000 3,600,00 1,700,000 1,000,000 rest (a) Calculate the net present value of the proposed investment in the drilling and production operation ignore income taxes and round answer to the b) What will the internal rate of return on this investment be relative to the cost of capital Explain your answer Essay Toolbar navigation B IS EEEAA