Question
The Pickles Brewing Company has been successful as a small craft microbrewery with a focus on distributing its products to bars and restaurants. They are
The Pickles Brewing Company has been successful as a small craft microbrewery with a focus on distributing its products to bars and restaurants. They are considering a bottling line that will allow them to start distributing to grocery and party stores. The equipment will cost $79920 to purchase. It's expected that additional sales will be $28721 per year while variable expenses are expected to increase $4675 annually. The equipment is expected to last 5 years and will need a one time overhaul in year 3 that will cost $3151. The Johnny Pickles Brewing Company uses a discount rate of 9% when deciding to accept a project. What is the projected undiscounted cash flow for the bottling line in year 3?
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